Moody's drops Wm. Bolthouse view to negative

Moody's Investors Service said it changed the outlook for Wm. Bolthouse Farms, Inc. to negative from stable.

The ratings that remain unchanged include its B2 corporate family rating, B1 rating on its senior secured revolving credit and first-lien term loan and Caa1 on its second-lien term loan, the agency said.

The change to a negative outlook reflects the company leverage increase over the past several quarters, Moody's said, and concerns about its tight cushion under the first-lien leverage covenant.

The agency said it expects improvement in leverage as the year progresses, but it will be some time before the company can reach the leverage levels originally expected.

The rating is supported by its leading market position within its core carrot business and its healthy beverage segment, the agency said, as well as the relatively stable nature of the company's earnings with less volatility than its other natural product processors.

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