Upbeat despite downgrade

In its decision to downgrade EWOS, Moody’s noted several issues related to Norwegian feed market conditions and raw materials challenges. In addition, Moody’s referred to the credit situation in Chile, where EWOS and its parent company have taken an active role to find a resolution of the financial distress of two important customers.  The company believes the outcome of this process and the purchase of Nova Austral will be positive for EWOS business in Chile.

However, according to Brent Baumbusch, CFO of the EWOS Group: “The company’s liquidity situation is adequate, with NOK 580.9 m cash balance at the end of June 2014 and an undrawn NOK 600 million revolving credit facility. There is no amortization of debt, and no credit arrangements of the company are tied to the Moody’s rating.”

EWOS will respond to questions raised as a result of the downgrade in connection with EWOS’s update on interim results for January-Sept 2014. In addition, the company will communicate further information in relation to the Nova Austral acquisition at closing of the transaction, which is expected to happen within two weeks.