Moody's may lower Del Monte

Moody's Investors Service said it placed the Ba3 rating on senior secured debt, the B2 senior subordinated rating and the Ba3 corporate family rating for Del Monte Corp. under review for possible downgrade.

Moody's said it also affirmed the company's SGL-2 speculative-grade liquidity rating.

The agency noted that these actions follow the announcement that the company will acquire the Milk Bone pet treat business from Kraft Foods for $580 million in cash.

Moody's said it review will focus on the strategic fit of the Milk Bone business and the heightened integration risk and management challenges created by two material acquisitions being made over a short period of time.

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