S&P: Del Monte up to positive, loan rated BB, notes B

Standard & Poor's said it revised its outlook on Del Monte Corp. to positive from stable. At the same time, S&P assigned its BB rating and 1 recovery rating to Del Monte's proposed $950 million senior secured credit facility.

In addition, S&P assigned a B rating to Del Monte's proposed $250 million senior subordinated notes due in 2015 and affirmed its existing ratings on Del Monte and parent company, Del Monte Foods Co., including its BB- corporate credit ratings.

S&P said the outlook revision reflects the company's successful integration of H.J. Heinz Co.'s North American pet food, seafood, private label soup and infant feeding operations that were acquired in 2002.

In addition, S&P said Del Monte has made progress in de-leveraging the balance sheet following the acquisition during a period of rising commodity costs and increased competition.

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