Moody’s may raise the credit rating of Bright Food Group

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As quoted from NZ Herald, Skykiwi.com reported on August 15 that Bright Food (Group) Co., Ltd., one of the major share holders of Synlait Milk, might benefit from the recent contamination scandal which has severely compromised the reputation of the diary giant Fonterra. As one of international rating agencies at present, Moody’s is likely to raise the credit rating of Bright Food Group.

Fonterra, the No. 1 milk powder provider of China, occupies as high as 60% of Chinese milk powder market shares. In response to the shocking news exposed last week on the contaminated whey protein concentrate found in Fonterra’s milk powder, Moody’s stated in a declaration that it had affirmed the positive impact the incident exerted on the Baa3 credit rating and the stable outlook of Bright Food Group.


Alan Gao, a senior analyst from Moody’s, affirmed this scandal would leave Bright Food Group in a positive position. With Bright Diary & Food Co., Ltd.[01] acting as the operator for its diary business, the Group is among the top 3 diary giants in China in terms of sales volume.

Fonterra would, according to Moody’s, suffer a disordered operation with a stained image. Meanwhile, many customers would turn their eyes on leading home-made brands.

Synlait Milk declared last week that all products under its umbrella were free from the contaminated whey protein. Though its sales volume might slump for a while and it might be subject to additional inspections as the aftermath of the contamination scandal, Synlait denied the possibility that its sales growth in China would be negatively affected in the long run.

Synlait’s stock price rose by 0.7% to RMB2.73 per share on the NZX since the eruption of Fonterra’s scandal. In addition to two internal investigations carried out by Fonterra within its system at present, an independent investigation would be rolled out by Ministry for Primary Industries and a government-level investigation would also be conducted by related authorities in New Zealand soon. New Zealand Prime Minister John Key expressed that he might pay a visit to China to make an announcement after the release of the results of the four investigations.

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