S&P boosts Kraft Heinz

S&P said it raised its issuer and senior unsecured ratings for Kraft Heinz Co. to BBB- from BB+.

“The upgrade to investment-grade reflects our view that the company has instituted better cost controls and will continue to manage the balance sheet prudently. The pandemic drove significantly higher demand for the company's products while providing incremental cash flow and time to effectuate its turnaround plan. Over this time, the company improved its governance, risk management and organizational capabilities including by strengthened its management team, notably bringing in operations-focused senior talent,” S&P said in a press release.

The agency said it estimated that adjusted leverage improved to 3.3x in fiscal 2021 (pro forma for recent divestitures and after taxes to be paid) from more than 4.5x in 2019.

The outlook is positive.

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