Fitch upgrades Kraft Heinz

Fitch Ratings said it upgraded the long-term issuer default ratings of the Kraft Heinz Co. and its subsidiary, Kraft Heinz Foods Co. to BBB- from BB+. The agency also raised the unsecured debt to BBB- from BB+/RR4.

“The upgrade reflects Fitch's expectation that KHC will sustain the improved operating trajectory relative to its pre-pandemic profile given portfolio optimization and repositioning to enable KHC to focus on faster growing categories and geographies. These efforts, alongside good cost reduction, strategic investments and balance sheet management, have improved Fitch's confidence in the company's ability to generate at least flat organic sales growth and EBITDA (pro forma for asset sales) at or above the mid-$5 billion range while sustaining gross debt/EBITDA below 4x,” Fitch said in a press release.

The outlook is stable.

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