S&P cuts Campbell Soup

S&P said it lowered its corporate credit rating on Campbell Soup Co. to BBB from BBB+. The outlook is negative.

At the same time, S&P affirmed the A-2 short-term rating.

S&P also lowered the existing issue-level ratings to BBB from BBB+.

The downgrade reflects S&P’s belief that Campbell's pro forma credit protection measures will meaningfully deteriorate following the company’s acquisition of Snyder's-Lance Inc. for about $6.1 billion and will remain weaker than S&P’s prior expectations for several years after the close of the transaction.

“In addition, S&P Global Ratings believes the company's willingness to fund a large acquisition almost entirely with debt is a departure from its historically conservative financial policy that supports the current ratings,” S&P said in a news release.

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