Moody's rating on Lion Nathan unchanged

By Phil Boeyen, ShareChat Business News Editor

Thursday 30th August 2001

Ratings agency Moody's has affirmed Lion Nathan's (NZSE: LNN) credit ratings following the company's decision to sell its Montana (NZSE: MON) shareholding.

Moody's says it expects Lion will use the sale proceeds of around A$530 million to reduce its high debt levels resulting from the investment in Montana.

The ratings agency says the sale of the winemaker and the expected debt reduction should increase the financial flexibility of Lion in the near term, and help with the financial pressure from the slow exit of its loss-making China operations.

"In addition, the company's competitive position in the Australasia beer markets, and its stable and predictable operating cash flow provide key support to the ratings," Moody's says.

Lion's rating outlook has been pegged at stable.

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