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Prospect News home > News index > List of issuers C > Headlines for Conagra Brands Inc. > News item |
Fitch downgrades Conagra
Fitch Ratings said it downgraded the long-term issuer default rating of Conagra Brands, Inc. to BBB- from BBB.
The outlook is stable.
The agency said the action reflects increased leverage post the company’s proposed acquisition of Pinnacle Foods, Inc.
Conagra expects to finance the transaction with $7.3 billion of new debt, $3 billion of Conagra equity to be issued to Pinnacle's shareholders and about $600 million of incremental cash proceeds from a public equity offering or divestitures.
Pro forma leverage is expected to be 5 times at transaction close and the BBB- rating assumes that leverage would return to 4 times or under within 24 months to 36 months of the acquisition close on EBITDA growth and debt paydown using free cash flow, Fitch said.
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