S&P upgrades Flowers Foods

Standard & Poor’s said it raised the ratings on Flowers Foods Inc., including its corporate credit rating, to BBB from BBB-.

The outlook is stable.

The upgrade reflects the company’s successful execution of its domestic geographic expansion and growth strategy while still demonstrating a track record of deleveraging following the acquisitions, S&P said.

Flowers successfully integrated the acquisition of certain operations from Hostess in 2013, the agency said, while also paying down roughly $300 million in debt using internal cash flows.

The acquisition improved geographical diversity, grew the company’s scale and strengthened its brand portfolio because it added Wonder Bread, a well-known brand, Fitch said.

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