Del Monte Foods Inc. 'B-' Corporate Credit Rating Affirmed; Outlook Remains Negative

Del Monte Foods Inc.'s fiscal 2016 financial results came in below its budget. The 'B-' rating affirmation reflects our expectation for material performance improvements this fiscal year as the company laps one-time operational missteps, resulting in debt to EBITDA falling to about 8x by the end of fiscal 2017. The negative outlook reflects the probability for a lower rating within the next few quarters if the company's operating performance does not improve materially, resulting in a continued unbalanced capital structure, including leverage over 10x, or if liquidity becomes constrained. NEW YORK (S&P Global Ratings) Aug. 15, 2016--S&P Global Ratings today affirmed its 'B-' corporate credit rating on Walnut Creek, Calif.-based Del Monte Foods Inc. The outlook is negative. At the

...+ Del Monte Foods Inc.'s fiscal 2016 financial results came in below its budget. + The 'B-' rating affirmation reflects our expectation for material performance improvements this fiscal year as the company laps one-time operational missteps, resulting in debt to EBITDA falling to about 8x by the end of fiscal 2017. + The negative outlook reflects the probability for a lower rating within the next few quarters if the company's operating performance does not improve materially, resulting in a continued unbalanced capital structure, including leverage over 10x, or if liquidity becomes constrained. NEW YORK (S&P Global Ratings) Aug. 15, 2016--S&P Global Ratings today affirmed its 'B-' corporate credit rating on Walnut Creek, Calif.-based Del Monte Foods Inc. The outlook is negative. At the same time, we affirmed our issue-level ratings on the company's first- and second-lien senior secured term loans. The first lien is rated 'B-' with a '3' recovery rating, indicating our expectation for meaningful...

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