S&P: Pinnacle Foods loan B+

Standard & Poor's said it affirmed the B corporate credit rating on Pinnacle Foods Finance LLC.

The agency also said it assigned a B+ rating to the company's proposed new five-year $150 million revolving credit facility and 6.5-year $400 million term loan E.

The recovery rating for both facilities is 2, indicating 70% to 90% expected recovery in a default.

The B+ issue level and 2 recovery ratings remain unchanged on the remaining $1.2 billion outstanding on term loan B, of which $600 million now has an extended maturity of 2016.

The outlook is stable.

The ratings reflect the company's highly leveraged financial risk profile and fair business risk profile, S&P said.

Key credit factors considered include Pinnacle's participation in the very competitive packaged foods industry and limited geographic diversity, the agency said, as well as its good market positions and diverse products.

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