S&P cuts Del Monte view to stable

Standard & Poor's said it revised its outlook on Del Monte Foods Co. to stable from positive.

At the same time, S&P said it affirmed its ratings, including its BB- long-term and B-1 short-term corporate credit ratings and senior secured debt at BB- and subordinated debt at B.

The agency said the outlook revision reflects the expected delay in returning credit measures to levels appropriate for a higher rating following the company's announced $705 million acquisition of Meow Mix Holdings Inc. from the Cypress Group.

The ratings reflect Del Monte's aggressive debt levels and the company's exposure to commodity pricing, S&P noted, adding partially offsetting these risk factors are the company's diverse product portfolio with leading market shares and high brand recognition in the stable domestic canned fruit and vegetable processing industry and pet food sector.

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