S&P lifts Smithfield Foods debt to BBB

S&P said it affirmed its ratings on Smithfield Foods Inc., including the BBB- corporate credit rating.

The outlook is stable.

At the same time, the agency raised the ratings on the company's senior unsecured debt, including the 7.75% senior notes due 2017, the 5.25% senior notes due 2018, the 5.875% senior notes due 2021 and the 6.625% senior notes due 2022, to BBB from BBB-.

Smithfield had $2.3 billion of debt outstanding as of Oct. 2 and subsequently called $250 million of its 5.25% senior notes due 2018.

The issue upgrades follow the recent announcement by WH Group to unconditionally and irrevocably guarantee the obligations under the 7.75% notes, the 5.25% notes, the 5.875% notes and the 6.625% notes. S&P said it believes the guarantees are credit enhancing and allow for credit substitution, and, consequently, it rates the notes at the same level as the parent and guarantor.

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