Moody’s might cut Campbell Soup

Moody’s Investors Service said it placed all the ratings of Campbell Soup Co. under review for downgrade, including the Baa2 senior unsecured debt rating and Prime-2 short-term rating.

"The sharp and unexpected decline in profitability in the third quarter casts serious doubt that Campbell will be able to meet its deleveraging plans following the Snyder's-Lance acquisition," Brian Weddington, Moody's senior credit officer, said in a news release.

"Additionally, the departure of the CEO adds further uncertainty about whether the company will respond successfully to its operating challenges in the near term.”

The agency said its review will focus on developing a forward view of Campbell's operating performance taking into consideration the increasing challenges it faces in its core operations and ongoing integration risks related to the Snyder's-Lance acquisition.

© 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.