The Australian sharemarket has given the thumbs up signal to the latest executive upheavals at the battered Southcorp wine group despite its being reduced stock status.
The changes were announced last week by recently appointed chief executive John Ballard. Standard & Poor’s cut the company’s long term credit rating to speculative or sub-investment grade BB+/B saying a recovery in earnings and cash flows could take several years.
But Southcorp shares jumped 3% to A$2.80 (US$1.82) in Monday trading. Analysts said the downgrading had been widely expected and it had anyway been a strong day on the market overall.
