Moody’s alters Kraft Heinz view to stable

Moody’s Investors Service said it changed the outlook to stable from negative and affirmed Kraft Heinz Foods Co.’s ratings and other subsidiaries of Kraft Heinz Co.

The outlook reflects the significant progress the company has made toward reducing financial leverage and improving its operating performance over the past year such that a rating change is unlikely to occur over the next 12 to 18 months, the agency said.

“Specifically, through earnings growth and $1.2 billion of debt repayment, the company has successfully reduced debt/EBITDA below the maximum 4.5x that Moody’s has said is tolerable for Kraft Heinz at the Baa3 rating,” the agency said.

Moody said it expects a significant portion of the about $5 billion in after-tax proceeds from recently announced asset sales will be used to reduce debt and financial leverage further.

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