BANGALORE, India -- Standard & Poor's Ratings Services placed its 'BB' corporate credit rating on Philippine-based food company Universal Robina Corp. (URC) on credit watch with negative implications, after a similar action on URC's parent, JG Summit Holdings Inc.
The agency flagged the possible downgrade, saying increased leverage and capital requirements at the parent level may cause URC to provide higher dividend payouts or financial support to the parent, thereby weakening its own rating support.
S&P also placed its 'BB' rating on the $200 million senior unsecured notes issued by URC's wholly owned unit, URC Philippines Ltd., on negative watch.
