Fitch: Dean Foods view now negative

Fitch Ratings said it affirmed the following ratings of Dean Foods Co.’s long-term issuer default rating at BB- secured bank credit facility at BB+ and senior unsecured notes at BB-.

The agency also affirmed Dean Holding Co.’s long-term issuer default rating at BB- and senior unsecured notes at BB-.

The outlook was revised to negative from stable.

Fitch said the negative outlook reflects Dean's recently elevated leverage and expectations that it will continue to rise in the near term, based on the company's need for further covenant relief discussed below. In addition, Fitch estimates that free cash flow could be negative for the year due to severe earnings pressure.

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