Conagra Brands Inc. (Formerly ConAgra Foods Inc.) Upgraded On Debt Reduction With Proceeds Of Lamb Weston Spin-Off

U.S.-based Conagra Brands Inc. (formerly known as ConAgra Foods Inc.) completed its spin-off of Lamb Weston Holdings Inc. The company has reduced funded debt by $4.5 billion from fiscal 2015. We estimate pro forma debt leverage of around 2.5x. As a result, we are raising our ratings, including the corporate credit rating, one notch to 'BBB' from 'BBB-'. Concurrently, we are raising our short-term rating to 'A-2' from 'A-3.' The stable outlook reflects our expectation that the new company will manage a financial policy consistent with maintaining debt leverage around 3x and below, and that operating performance should continue to improve because of its cost reduction initiatives and better pricing. SAN FRANCISCO (S&P Global Ratings) Nov. 9, 2016--S&P Global Ratings

...+ U.S.-based Conagra Brands Inc. (formerly known as ConAgra Foods Inc.) completed its spin-off of Lamb Weston Holdings Inc. + The company has reduced funded debt by $4.5 billion from fiscal 2015. We estimate pro forma debt leverage of around 2.5x. + As a result, we are raising our ratings, including the corporate credit rating, one notch to '###' from '###-'. Concurrently, we are raising our short-term rating to 'A-2' from 'A-3.' + The stable outlook reflects our expectation that the new company will manage a financial policy consistent with maintaining debt leverage around 3x and below, and that operating performance should continue to improve because of its cost reduction initiatives and better pricing. SAN FRANCISCO (S&P Global Ratings) Nov. 9, 2016--S&P Global Ratings today raised its ratings, including its corporate credit rating to '###' from '###-', on Chicago-based Conagra Brands Inc. We also raised our short-term rating to 'A-2' from 'A-3'. The outlook is stable. "The upgrade reflects...

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