S&P: Bolthouse Farms view negative

Standard & Poor's said it revised its outlook on Wm. Bolthouse Farms Inc. to negative from stable and affirmed its ratings, including the B corporate credit rating.

The outlook revision reflects the agency's concerns about the limited cushion under Bolthouse's bank financial covenants because of weaker-than-expected operating performance. In addition, S&P said it believes the company's liquidity position could decline because bank financial covenants will tighten in March 2009.

The ratings on Bolthouse reflect its narrow focus on the cut-and-peeled carrot and super-premium natural beverage categories, its high debt leverage and its participation in the highly competitive vegetable and beverage industries, the agency said.

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