Fitch rates Smithfield revolver BBB

Fitch Ratings said it assigned Smithfield Foods, Inc. a short-term issuer default rating and commercial paper rating of F2 and affirmed its BBB long-term issuer default rating and senior unsecured note ratings.

The agency also assigned a BBB rating to Smithfield's new $1.75 billion unsecured revolving credit facility, which replaces its previous $1 billion senior unsecured revolving credit facility and $500 million senior unsecured term loan.

The outlook is stable.

“Smithfield's ratings reflect its leading position in the global pork industry, significant presence in higher-margin packaged meats, and modest financial leverage,” Fitch said in a news release.

“Due to its ownership by WH Group, Inc. (BBB+/stable) and Fitch's parent-subsidiary linkage criteria, Smithfield's ratings receive a one-notch uplift from its stand-alone credit profile.”

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