Moody's raises Del Monte Foods

Moody's Investors Service said it upgraded the ratings of Del Monte Foods, Inc., including the company's corporate family rating to B2 from B3, the probability of default rating to B2-PD from B3-PD and the senior secured notes rating to B3 from Caa1. The $450 million asset-backed revolving credit facility due 2026 is not rated. Moody's withdrew the SGL-3 speculative grade liquidity rating.

“The rating upgrades reflect the company's strengthening operating performance following a May 2020 recapitalization and major operational restructuring, which have improved liquidity and allowed the company to accelerate deleveraging from just over 10x debt to EBITDA in fiscal 2020 to 4.3x in the LTM period ended Oct. 31, 2021 (on Moody's adjusted basis). Leverage from October to the FYE April 2022 should decrease further as the ABL revolver balance is reduced after the peak packing season,” the agency said in a press release.

The outlook is stable.

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