S&P may lower Campbell Soup, lift Bolthouse

Standard & Poor's said it placed its A- long term corporate credit rating and all of its long-term issue-level debt ratings on Campbell Soup Co. on CreditWatch with negative implications.

At the same time, S&P placed its ratings, including its B corporate credit rating on Wm. Bolthouse Farms Inc. on CreditWatch with positive implications.

The agency said the rating action follows Campbell's announcement that it will be acquiring Wm. Bolthouse Farms Inc. from majority owner Madison Dearborn Partners LLC and other private investors for approximately $1.55 billion.

"We believe the proposed acquisition would meaningfully increase Campbell's debt obligations and weaken its credit protection measures," said S&P credit analyst Bea Chiem in a news release.

"Concurrently, we believe that Bolthouse's credit profile will improve with the acquisition by the larger and financially stronger Campbell Soup Co.," Chiem said.

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