Conagra Brands Inc. Business Risk Assessment Revised To Satisfactory; Outlook Negative

U.S.-based Conagra Brands Inc. reported an approximately 9% decline in S&P Global Ratings-adjusted EBITDA in the third quarter ended Feb. 27, 2022, due primarily to double-digit-percent inflation. Compared to peak pandemic levels, trailing-12-month S&P Global Ratings-adjusted EBITDA is down roughly 20% and adjusted leverage deteriorated to 4.5x from 3.6x for the same prior-year period. We lowered our assessment of the business risk profile to satisfactory from strong given Conagra's profit underperformance during the current inflation cycle among investment-grade packaged food peers. And while the company indicates that compared to the wider packaged foods sector, its portfolio under-indexes to store brand rivals, certain areas are highly susceptible, including shelf-stable products and basic frozen vegetables. We affirmed all our ratings on the

...April 21, 2022 - U.S.-based Conagra Brands Inc. reported an approximately 9% decline in S&P Global Ratings-adjusted EBITDA in the third quarter ended Feb. 27, 2022, due primarily to double-digit-percent inflation. Compared to peak pandemic levels, trailing-12-month S&P Global Ratings-adjusted EBITDA is down roughly 20% and adjusted leverage deteriorated to 4.5x from 3.6x for the same prior-year period. - We lowered our assessment of the business risk profile to satisfactory from strong given Conagra's profit underperformance during the current inflation cycle among investment-grade packaged food peers. And while the company indicates that compared to the wider packaged foods sector, its portfolio under-indexes to store brand rivals, certain areas are highly susceptible, including shelf-stable products and basic frozen vegetables. - We affirmed all our ratings on the packaged food firm, including our '###-' long-term and 'A-3' short-term issuer ratings because demand for its products remains...

Ratings Action