Moody’s confirms Campbell Soup

Moody's Investors Service said it confirmed Campbell Soup Co.'s senior unsecured debt rating at Baa2 and its commercial paper rating at Prime-2.

The outlook is negative.

The action concludes the review for downgrade that began on May 21.

The review was prompted by an unexpectedly sharp decline in profitability in Campbell's fiscal third quarter and the sudden resignation of the company's chief executive officer, the agency said.

The confirmations reflect an expectation that the recently announced asset sales, the net proceeds from which will be used to repay debt, should be sufficient to reduce financial leverage over the next 12 to 15 months to a level that is acceptable at the current ratings, based on the company's post-divestiture business profile, Moody’s said.

© 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.