Nordic Credit Rating (NCR) has raised its long-term issuer rating on Norway-based food producer Nortura SA to 'BBB-' from 'BB+'. The outlook is stable. At the same time, the short-term issuer rating has been raised to 'N3' from ‘N4’. The senior unsecured issuer rating has been raised to ‘BBB-‘ from ‘BB+’ and the subordinated debt to ‘BB’ from ‘BB-‘.
Rating rationale
The rating action reflects an improvement in Nortura’s financial risk profile and operating performance, supported by higher EBITDA and margins and reduced leverage. Better supply-demand balance and the elimination of most excess beef and pork inventories have lowered working capital requirements and strengthened cash generation. As a result, leverage has declined materially over the past two years.
Net debt to EBITDA improved to 3.1x in 2025 from 4.3x in 2024. We expect leverage to remain below 3.5x over the forecast period and EBITDA to net interest to strengthen to 5.8x by 2028, supported primarily by higher earnings and stable debt levels rather than additional inventory reductions.
Operating performance has improved, supported by better market balance, efficiency measures, and initial benefits from Nortura’s restructuring programme. We also view the company as more resilient than in previous years, reflecting implemented measures and ongoing transformation initiatives that have strengthened its ability to manage market volatility and operational challenges.
We expect the EBITDA margin to increase over the forecast period, reaching 4.5% in 2028, driven by further benefits from restructuring initiatives and investments. Although annual investments are projected to rise to around NOK 800m, we consider the resulting pressure on cash generation manageable, given the stronger earnings base and improved leverage.
Stable outlook
The outlook is stable, reflecting expectations for a sustained improvement in the supply–demand balance, improved inventory management, and stronger margins. While the company remains exposed to market fluctuations, it is taking steps to enhance resilience. We expect further improvement in operating margins and credit metrics through ongoing efficiency investments. We believe market conditions will remain favourable for Nortura and assume the company will retain its regulatory role and strong market position.
We could raise the rating if market predictability and company resilience materially improve, net debt/EBITDA remains below 2.5x and EBITDA/net interest exceeds 10x for a prolonged period, and operating margins are materially above current levels.
We could lower the rating if net debt/EBITDA rises above 3.5x, EBITDA/net interest falls below 4.5x or if operating performance deteriorates, resulting in EBITDA margin declining below 4%.
Relevant research and rating actions
(i) Nortura SA 'BB+' long-term issuer rating affirmed; Outlook positive, 16 Sept. 2025
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | BBB- | BB+ |
| Outlook: | Stable | Positive |
| Short-term issuer credit rating: | N3 | N4 |
| Senior unsecured issue rating: | BBB- | BB+ |
| Subordinated issue rating: | BB | BB- |
Contacts:
Anine Gulbrandsen, analyst, +4797501657, anine.gulbrandsen@nordiccreditrating.com
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com
Elisabeth Adebäck, analyst, +46700442775, elisabeth.adeback@nordiccreditrating.com
The methodology documents used for this rating are NCR's Corporate Rating Methodology published on 8 May 2023, NCR's Rating Principles published on 14 Feb. 2024 and NCR's Group and Government Support Rating Methodology published on 14 Feb. 2024. For the full regulatory disclaimer please see the rating report.