S&P cuts Dean Foods view to stable

Standard & Poor's said it revised its outlook on Dean Foods Co. and wholly owned subsidiary Dean Holding Co. to stable from positive.

At the same time, S&P said it affirmed its BB+ corporate credit rating and other ratings on Dean Foods and Dean Holdings.

The agency said the outlook revision reflects its expectation that in the near to intermediate term the company will use a substantial portion of free cash flow for share repurchases rather than for permanent debt reduction.

S&P noted the ratings on Dean Foods and its subsidiary reflect Dean Foods' position as the leading national dairy company in the United States, with about a 35% share, due to the stable demand characteristics of the industry.

This is tempered by a moderately aggressive financial profile and the company's acquisitiveness, the agency added.

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