Fitch: Del Monte outlook stable

Fitch Ratings said it affirmed Del Monte Foods Co. (BB issuer rating) and Del Monte Corp.'s ratings and revised the outlook to stable from negative.

Del Monte Corp. has a long-term issuer default rating of BB, senior secured bank facility BB+ and senior subordinated notes BB-.

The ratings affirmation and outlook revision reflect Del Monte's leading market positions in shelf-stable consumer fruits and vegetables, the company's robust pipeline of higher-margin pet products and the successful integration of the Meow Mix, Holdings, Inc. and Milk-Bone acquisitions, according to the agency.

These factors are balanced against heightened fish input cost in Del Monte's StarKist tuna business and the risks of competing against substantially larger peers in the faster growing pet food and snack categories, Fitch said.

For the 12 months ended July 29, its total debt-to-operating EBITDA ratio was 4.3 times, the agency said.

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