S&P shifts Performance Food view to positive

S&P said it revised Performance Food Group Inc.’s outlook to positive from negative and affirmed the B+ issuer credit rating and B rating on its senior unsecured notes, with a 5 recovery rating.

“The outlook revision reflects the company's recent better-than-expected operating performance and our expectation for continued recovery in fiscal 2021. Although the trajectory of the virus is still uncertain, PFG's business showed resilience during the pandemic and continued to navigate through the challenging market conditions,” S&P said in a press release.

The agency noted PFG's recovery has outpaced that of other large broadline foodservice distributors because of its business mix and skew toward the Pizza and Mexican categories, which performed well.

The improved outlook reflects the potential for a higher rating over the next year if adjusted leverage improves comfortably below 5x, which may result if PFG's business continues to recover, driven by improving sales trends, share gains and cost controls, S&P said.

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