S&P: Wrigley view now stable

S&P said it revised its outlook on Wm. Wrigley Jr. Co. to stable from positive and affirmed all ratings on Wrigley, including the A long-term corporate credit rating.

Mars Inc., the parent of Wrigley, has entered into a definitive agreement to purchase VCA Inc. for about $9.1 billion (including $1.4 billion of outstanding debt), funded through a combination of cash and debt.

“The outlook revision to stable reflects our view that the increase in leverage to fund the large acquisition will likely delay additional deleveraging at the group during the next few years. Still, the affirmation reflects our expectation that the group will be able to restore credit protection measures near current levels within 24 months following the acquisition given its strong free operating cash flow generation,” S&P said in a news release.

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