NZ dairy giant Fonterra at risk of credit downgrade, says S&P

Wellington

STANDARD and Poor's said on Thursday New Zealand's Fonterra, the world's largest dairy exporter, was at risk of a credit downgrade due to its high debt levels and a global price slump, concerns the cooperative said it is already addressing.

The ratings agency's move comes as Fonterra, which controls about a third of the global dairy trade, is feeling the pain of a more than 40 per cent slump in global dairy prices since early this year as buying by China has dried up and other producers have ramped up production.