Fitch revises Kraft Heinz view to positive

Fitch Ratings said it revised the Kraft Heinz Co. and its subsidiary, Kraft Heinz Foods Co. to positive from stable.

The outlook reflects strong performance in 2020, which benefited from increased demand for packaged foods due to the pandemic, with potential for significant debt paydown in 2021 and 2022, the agency said.

“This reflects strong cash balances of $3.4 billion at the end of 2020 and potential proceeds from the company's announced sales of its natural cheese and nuts businesses. The company generated strong EBITDA growth of $5.7 billion in 2020, with gross debt/EBITDA of 4.2x,” Fitch said in a press release.

The agency also affirmed their issuer ratings at BB+.

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