Nestlé: Moody's downgrades rating, with stable outlook
(CercleFinance.com) - Moody's downgraded Nestlé's credit rating late on Tuesday, after the world's largest food company last week announced plans to buy back shares.
The ratings agency has downgraded its credit issuer rating from "Aa2" to "Aa3". It is sticking to a stable outlook for this rating.
This downgrade follows Nestlé's announcement that it plans to make an additional share buybacks of 20 billion Swiss francs over the next three years, which are expected to lead to a deterioration in Nestlé's credits metrics according to Moody's.
Despite these comments, the Nestlé share was pretty flat (+0.1%) in Zurich on Wednesday.
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The ratings agency has downgraded its credit issuer rating from "Aa2" to "Aa3". It is sticking to a stable outlook for this rating.
This downgrade follows Nestlé's announcement that it plans to make an additional share buybacks of 20 billion Swiss francs over the next three years, which are expected to lead to a deterioration in Nestlé's credits metrics according to Moody's.
Despite these comments, the Nestlé share was pretty flat (+0.1%) in Zurich on Wednesday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.