Moody’s changes Conagra view to stable

Moody's Investors Service said it changed Conagra Brands, Inc.'s outlook to stable from positive and affirmed its Baa3 senior unsecured notes and credit facility ratings.

“The change to a stable outlook reflects the pressure that high commodity inflation and logistics and transportation costs is putting on margins and operating profit. Despite strong pricing action and anticipated top-line growth, Moody's now expects that these pressures will keep leverage above levels that had previously been expected, making an upgrade in the next 12-18 months less likely,” the agency said in a press release.

Moody's adjusted debt to EBITDA leverage stood at 4.7x at the end of the company's third quarter ended in February and the agency said it sees it remaining above 4x for the next 12-18 months.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.