Moody's could lift US Foods

Moody's Investors Service said it placed all ratings of U.S. Foods, Inc., including the B3 corporate family rating, on review for upgrade.

These actions are due to US Foods' announcement that it was being acquired by Sysco Corp., a food distributor with $45 billion in revenues rated, A1 (rating under review for downgrade) for total consideration of about $8.2 billion.

"While there is much work remaining, including among other things regulatory review, in the event this transaction closes along the lines outlined earlier today, an upgrade well into investment grade is likely," Moody's vice president Charlie O'Shea said in a news release.

The review will also consider the extent to which Sysco provides a guarantee or other form of parent support should US Foods existing debt remain outstanding after the transaction is completed, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.