S&P upgrades Tyson Foods

S&P said it raised its ratings on Tyson Foods Inc., including the issuer credit rating to BBB+ from BBB.

Tyson has largely integrated last year's acquisition and should steadily grow its EBITDA despite recent softness in its chicken and prepared foods segments. Tyson spent just under $2.5 billion in acquisitions in fiscal 2019, including among other transactions Keystone Foods and the Thai and European poultry operations from BRF Ltd.

“Although the company remains acquisitive, we believe it will steadily reduce and manage leverage closer to or below 2.5x by prioritizing de-leveraging over shareholder returns,” said S&P in a press release.

The outlook is stable.

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