StockCo 1H19 Performance Update – Recommendation Maintained

StockCo recently provided noteholders with an update on their 1H19 performance. Livestock receivables were AUD144m in 1H19, down around 15% in the half, while income was around 10% lower. The slowdown was expected, and is a result of prolonged drought conditions. Credit losses remain very low. We forecast StockCo’s financial performance in FY19 to remain subdued, although we expect the credit profile to remain sound, overall.