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Moody's Upgrades Rating on Snow Brand to Ba3

Posted on: Thursday, 7 July 2005, 12:00 CDT

Jul. 7--TOKYO -- Moody's Investors Service said Thursday it has upgraded Snow Brand Milk Products Co.'s senior unsecured long-term debt rating to Ba3 from B2 with a stable outlook, reflecting the continuing recovery in its operating performance and financial profile.

Moody's cut Japan's major dairy company's rating to the speculative rating of Caa1 -- indicating extremely vulnerable financial security -- in March 2002 in the aftermath of a food poisoning scandal involving its milk products in 2000, and a 2001 fraud scandal involving a now-defunct subsidiary that took advantage of the government's scheme to help beef traders affected by a mad cow case found in Japan.

The new rating means the company still has some speculative elements, but stands at the upper end among the speculative ratings.

Moody's said the latest upgrading recognizes Snow Brand's successful reform in its capital structure and business portfolio under its reconstruction plan.

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Source: Kyodo News International, Tokyo

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