S&P: Del Monte unchanged

Standard & Poor's said all of the ratings, including the B corporate credit rating, on Del Monte Foods Inc. remain unchanged.

The increase in total debt by $40 million from the previously announced transaction does not materially change the company's credit protection measures.

S&P said it understands that the additional debt will reduce the equity contribution by Del Monte Pacific Ltd.

The ratings reflect a view that the company has a weak business risk profile and a highly leveraged financial risk profile, the agency said.

S&P said it estimates that the company's leverage will be about 7x for the 12 months ended Oct. 31.

Key credit factors considered include the company's leading share positions, strong brand recognition, participation in slower growth categories with a greater degree of private-label penetration, exposure to volatile input costs and limited brand and geographic diversification, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.