S&P changes Kraft Heinz view

S&P said it affirmed its BBB/A-2 issuer credit rating and BBB senior debt rating on Kraft Heinz Co. and revised the outlook to negative from stable.

“We are revising our outlook to negative from stable to reflect the potential for a lower rating over the next 12-24 months if the business continues to falter, potentially due to a renewed shift in demand away from Kraft Heinz's products, an inability to control costs, or if the company's credit ratios do not improve in line with our revised forecast, which includes reaching 4x adjusted leverage in two years with further improvement thereafter,” the agency said in a news release.

“We could also lower the rating if the ongoing SEC investigation uncovers material accounting misstatements, internal control problems, or other irregularities that adversely affect our view of the company's financial position or its standing in capital markets.”

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