...+ Conagra Brands Inc. has announced that it intends to acquire Pinnacle Foods Inc. for approximately $10.9 billion, including Pinnacle's outstanding net debt. + We are affirming all of our ratings on U.S.-based Conagra, including our '###/A-2' corporate credit rating, because the transaction will combine two relatively well-performing packaged food companies, strengthen Conagra's already improving portfolio, and increase scale, particularly in frozen foods. + We are revising the outlook to negative from stable because of the meaningful increase in debt and balance sheet leveraging to around the low-5x area at close. + The negative outlook reflects the potential for a lower rating if we forecast that adjusted leverage will remain above 4x for two years following close. The transaction is occurring in a rising freight and commodity cost environment, which could derail projected credit ratio improvement, especially if retailer destocking accelerates or integration difficulties materialize....
