S&P boosts Kraft Heinz

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

“Kraft Heinz reported about 10% organic revenue growth for full-year 2022, excluding the impact from the 2021 nuts and cheese business divestitures, which indicates strong demand for the company's branded products. While growth is largely driven by price increases to account for inflation, we note that the company's volumes have not fallen meaningfully (estimated 30% price elasticity which is favorable) even with higher price points and a weaker consumer spending environment. Actual revenue growth for 2022 (which includes 2.9% negative impact from foreign exchange and 4.6% from divestitures) was 1.7%,” S&P said in a press release.

The agency said it expects similar growth in 2023.

The outlook is stable.

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