Moody's may cut Hershey

Moody's Investors Service said it placed the A1 senior unsecured long-term rating of the Hershey Co. under review for downgrade due to further declines in core operating performance. The company's Prime-1 short term was affirmed.

"Persistently high dairy costs and Hershey's need to respond to intensifying competition from the likes of Wrigley and Mars means that a recovery will likely require more time and resources than originally planned," lead analyst Brian Weddington said in a written statement.

Also, "turnover at the [chief executive officer, chief operating office and chief financial officer] positions in the same year raises concerns about strategy shift and makes execution all the more challenging," Weddington said.

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