Moody's cuts Ocean Spray preferreds

Moody's Investors Service said it downgraded the preferred stock of Ocean Spray Cranberries, Inc. to Ba3 from Ba2 and assigned the cooperative a Ba1 corporate family rating and Ba1-PD probability of default rating.

The outlook is stable.

Moody's said the downgrade of Ocean Spray's Ba3 preferred stock rating reflects the steady increase in debt the cooperative has incurred over the last few years, its increased reliance on its revolver to fund working capital needs and the intense competition it faces relative to both private label and much larger branded beverage competitors.

The rating also reflects the strength of the well-known Ocean Spray brand and its leading market share in the narrow category of cranberry-based foods and beverages, the agency said.

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