S&P affirms Dean Foods

Standard & Poor's said it affirmed its BB- corporate credit ratings and other ratings on Dean Foods Co. and its wholly owned subsidiary, Dean Holding Co.

At the same time, the agency said it removed the ratings from Creditwatch with negative implications, where they were originally placed on June 19, due to its concerns that in the near term Dean Foods would be faced with even higher commodity costs than its previous expectations because heavy rains and flooding in the Midwest damaged the crops, especially the corn crop.

In addition, the agency said it was concerned that as farmers passed along those higher costs the company's EBITDA margins could be squeezed further due to the lag in passing those increased costs to its customers.

The outlook is negative.

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