S&P could raise AdvancePierre

S&P said it placed its ratings, including the B+ corporate credit rating, on AdvancePierre Foods Holdings Inc. and its subsidiary AdvancePierre Foods Inc. on CreditWatch with positive implications.

"The CreditWatch placement follows Tyson's announcement that it has agreed to acquire AdvancePierre in a transaction valued at $4.2 billion. AdvancePierre's credit profile is likely to improve if the proposed acquisition by the larger and financially stronger Tyson occurs," S&P credit analyst Jessica Paige said in a news release.

This reflects the agency’s expectations that Tyson is highly likely to provide extraordinary support to AdvancePierre in a hypothetical credit-stress scenario.

S&P said it believes AdvancePierre is a good fit and important to Tyson's growth strategies, as it believes AdvancePierre's portfolio compliments well Tyson's existing prepared foods segment.

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