Moody's ups Kraft Heinz

Moody's Investors Service said it upgraded Kraft Heinz Foods Co.'s and its other subsidiaries including the senior unsecured ratings to Baa2 from Baa3.

“The upgrades reflect the significant progress the company has made toward reducing financial leverage and improving its operating performance in recent years. The company has benefitted from its new enterprise strategy and operating model under the leadership of Miguel Patricio who became CEO in 2019, centered around consumer platforms and emphasizing innovation and brand support,” Moody’s said in a press release.

However, the agency noted, “While margins have recently been pressured by inflation, and volumes as well because of pricing taken to cover inflation, improved supply chain performance and pricing that is catching up to cost inflation should begin to improve the EBITA margin modestly.”

The outlook is stable.

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