S&P puts Kraft Heinz on watch

S&P said it placed all of its ratings on Kraft Heinz Co., including the BBB long-term issuer credit rating and A-2 short-term issuer credit rating, on CreditWatch with negative implications.

The CreditWatch placement follows Kraft Heinz’s failure to file its 2018 10-K by the due date, which was extended at the end of February to March 14, S&P said in a news release.

This disclosure follows a series of negative developments over the last several quarters, including operational shortfalls that accelerated in the second half of 2018, the large fourth-quarter $15.4 billion goodwill and intangible charge-off, and disclosure of a U.S. Securities and Exchange Commission investigation into the company's accounting policies, procedures, and internal controls related to its procurement function.

“If we lower our ratings, the downgrade would likely be limited to one notch, unless particularly negative information is uncovered. We intend to resolve our CreditWatch after analyzing the 2018 10-K and first quarter 2019 10-Q,” S&P said in the news release.

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