S&P cuts Kraft to stable

Standard & Poor's said it revised the outlook on Kraft Foods Inc. to stable from positive.

The agency also said it affirmed the company's BBB corporate credit rating and A-2 short-term and commercial paper ratings.

Kraft's credit metrics are unlikely to support an upgrade in the near-term, S&P said, and there is limited information regarding the company's future financial policies to support a higher rating.

The agency said it believes the remaining business will have a strong business risk profile, albeit somewhat weaker than the consolidated Kraft's current business risk profile because of the more narrow business focus, reduced scale and lower margins.

The ratings on the currently consolidated Kraft reflect the company's position as one of the world's largest food and beverage companies, with a strong brand portfolio and international diversification, S&P said.

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