By LIAM DANN
Fonterra's activity in European and United States bond markets has attracted some rare independent analysis from across the Tasman.
In what Fonterra says may be the first time the company has been the subject of an in-depth analyst's report, National Australia Bank's credit research unit has concluded that
the company made good progress last year despite tough conditions.
Fonterra largely escapes attention because it is a farmer-owned co-operative, not a listed company.
National Australia Bank's head of fixed interest credit research, Philip Bayley, said Fonterra's €500 million ($951 million) bond placement in May last year and US$165 million ($285 million) private placement last month had prompted the institution to publish the research.
Fonterra has been active in foreign debt markets recently as part of a strategy to reduce reliance on short-term borrowing and replace it with a more conservative mix of medium and long-term borrowing.
The report expected Fonterra to make further cost saving and improvements in profitability but not to reduce its debt levels any further.
