S&P: Del Monte outlook positive

Standard & Poor's said it revised the outlook on Del Monte Foods Co. to positive from stable and affirmed its BB- corporate credit rating.

"The outlook revision reflects Del Monte's good operating performance and stronger credit measures for the fiscal year ended May 3, 2009, and our expectation that the company will be able to maintain its improved financial profile, despite some cost pressures," S&P analyst Alison Sullivan said in a statement.

As a result of EBITDA growth and debt repayment, the agency estimates leverage fell to about 3.8x in fiscal 2009, compared with about 4.8x during fiscal 2008.

Ratings reflect moderate debt levels and exposure to volatile commodity costs, the agency said.

Del Monte benefits from its diverse product portfolio with leading market shares and high brand recognition, the agency noted.

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