Ann: CREDIT: FCG: Fonterra notifies Fitch Ratings review

• Release Date: 22/10/15 08:30
• Summary: CREDIT: FCG: Fonterra notifies Fitch Ratings review
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					FCG
22/10/2015 08:30
CREDIT
PRICE SENSITIVE
REL: 0830 HRS Fonterra Co-operative Group Limited

CREDIT: FCG: Fonterra notifies Fitch Ratings review

FONTERRA NOTIFIES FITCH RATINGS REVIEW

Fonterra Co-operative Group Ltd has been notified by Fitch Ratings that they
have reviewed Fonterra's credit rating.

Fitch Ratings has lowered Fonterra's long-term Issuer Default Rating and
senior unsecured rating to A from AA- and Fonterra's short term Issuer
Default Rating to F1 from F1+. It has also lowered Fonterra's subordinated
debt rating to A- from A+. The outlook is stable.

Chief Financial Officer Lukas Paravicini said, Fitch's 'A' rating category
confirms that the Co-operative's underlying financial strength and credit
quality remain strong.

"We have maintained an 'A' rating category while progressing with a carefully
planned investment strategy. These strategic investments are making the
Co-operative stronger and positioning us well for the future.

"I reiterate my comments of last week, that the revised ratings will not have
any impact on Fonterra's strategy or on farmer shareholder pay-out."

Mr Paravicini said the Co-operative was continuing its strong financial
discipline including capital investment management, setting a prudent advance
rate payment to farmers for the current season, and applying its dividend
policy to ensure an on-going retention of a portion of earnings.

-ENDS-

For further information contact:
Simon Till
Director Capital Markets
Phone: +64 21 777807
End CA:00272134 For:FCG    Type:CREDIT     Time:2015-10-22 08:30:41