S&P upgrades Aspire Bakeries

S&P said it raised its ratings on Aspire Bakeries Holdings LLC to B from B-, its first-lien credit facilities to B+ from B and its second-lien term loan to B- from CCC+. The recovery ratings on the debt remain 2 and 5, respectively.

“The upgrade reflects Aspire's substantial profit improvement and reduced leverage. The company reported 10% annual sales growth for fiscal 2023 (ended July 29, 2023) because of double-digit price increases to offset input cost inflation, partially offset by a 1.6% decline in volume, largely due to strategic stock-keeping units (SKU) rationalizations. Underlying demand in the company's three businesses remains stable, despite significant price increases,” the agency said in a press release.

S&P noted Aspire’s S&P Global Rating-adjusted leverage plummeted to about 4.3x for the 12 months ended July 29, 2023, compared with 8.1x for the same period the previous year.

The outlook is stable.

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