KEY POINTS:
Fitch Ratings has affirmed dairy giant Fonterra's long term credit and senior unsecured notes ratings at AA- and subordinated notes at A+, with a stable outlook.
"The stable outlook reflects Fitch's expectation that Fonterra's strong financial flexibility will remain for the foreseeable future," Fitch said.
Fonterra's ratings are underpinned by available financial flexibility, by virtue of payments to shareholder suppliers being effectively subordinated to other creditors.
Its conservative milk supply payment arrangements mitigate the risks associated with global commodity prices, Fitch said.
