MHP

MHP signed a memorandum of understanding with Saudi Arabian poultry producer Tanmiah Food Company to launch a JV focused on poultry breeding and fodder production. The JV will be primarily funded by the Agriculture Development Fund of Saudi Arabia, while MHP will provide industry expertise to design production facilities adapted to local market conditions. The JV is subject to regulatory approvals, including by the General Authority for Competition of Saudi Arabia.

Moody's affirmed MHP’s corporate family rating (CFR) at Caa3 and downgraded its probability of default rating (PDR) by one notch to Ca-PD from Caa3-PD. It also affirmed MHP’s national scale rating (NDR) at Caa3.ua, with a negative outlook. The PDR downgrade reflects the agency’s view that the company does not have sufficient liquidity to repay its $500m Eurobond maturing in May 2024 and may not have access to capital markets or generate sufficient cash to repay the bonds. Moody’s expects MHP to seek a restructuring of its notes, including through a potential maturity extension, which Moody's would likely consider a distressed exchange.