Ratings agency Standard & Poor's (S&P) has cut its long-term corporate credit rating on Glanbia due to an insufficient improvement in the group's financial profile.
S&P cut the rating to "BB+" from "BBB-", although it said the outlook for the group was stable.
"Although Glanbia's financial profile has improved over the past three years, it remains below S&Ps expectations and is unlikely to meet expectations in the near term," the ratings agency said.
"Furthermore, anticipated higher expenditures on productive investments in 2004, which are likely to weigh on the group's free cash-low generation, are expected to constrain further debt reduction in the short term," it added.