Del Monte Foods Inc. Downgraded To 'CCC-', Outlook Negative, On Unsustainable Capital Structure - S&P Global Ratings’ Credit Research

Del Monte Foods Inc. Downgraded To 'CCC-', Outlook Negative, On Unsustainable Capital Structure

Del Monte Foods Inc. Downgraded To 'CCC-', Outlook Negative, On Unsustainable Capital Structure - S&P Global Ratings’ Credit Research
Del Monte Foods Inc. Downgraded To 'CCC-', Outlook Negative, On Unsustainable Capital Structure
Published Mar 23, 2018
4 pages (1614 words) — Published Mar 23, 2018
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

We expect U.S.–based Del Monte Foods Inc.'s leverage to remain above 10x through the end of their fiscal year ended April 2018. We are lowering our corporate credit rating to 'CCC-' from 'CCC+' to reflect our view that the capital structure is unsustainable. We are also lowering our ratings on the first-lien senior secured term loan to 'CCC-' from 'CCC+' and our ratings on the second-lien term loan to 'C' from 'CCC-'. Recovery ratings remain unchanged at '3' and '6', respectively, on these debt facilities. The negative outlook reflects our view that a default could occur in the next six months. NEW YORK (S&P Global Ratings) March 23, 2018--S&P Global Ratings today lowered its corporate credit rating on Walnut Creek,

  
Brief Excerpt:

...+ We expect U.S.¡based Del Monte Foods Inc.'s leverage to remain above 10x through the end of their fiscal year ended April 2018. + We are lowering our corporate credit rating to '###-' from '###+' to reflect our view that the capital structure is unsustainable. + We are also lowering our ratings on the first-lien senior secured term loan to '###-' from '###+' and our ratings on the second-lien term loan to 'C' from '###-'. Recovery ratings remain unchanged at '3' and '6', respectively, on these debt facilities. + The negative outlook reflects our view that a default could occur in the next six months. NEW YORK (S&P Global Ratings) March 23, 2018--S&P Global Ratings today lowered its corporate credit rating on Walnut Creek, Calif.¡based Del Monte Foods Inc. to '###-' from '###+'. The outlook is negative. We also lowered our ratings on the company's $710 million first-lien term loan due 2021 to '###-' from '###+'. The recovery rating remains '3', indicating our expectations for meaningful...

  
Report Type:

Ratings Action

Issuer
Del Monte Foods, Inc.
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
Buy Now

More from S&P Global Ratings’ Credit Research

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Del Monte Foods Inc. Downgraded To 'CCC-', Outlook Negative, On Unsustainable Capital Structure" Mar 23, 2018. Alacra Store. May 22, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Del-Monte-Foods-Inc-Downgraded-To-CCC-Outlook-Negative-On-Unsustainable-Capital-Structure-2011861>
  
APA:
S&P Global Ratings’ Credit Research. (). Del Monte Foods Inc. Downgraded To 'CCC-', Outlook Negative, On Unsustainable Capital Structure Mar 23, 2018. New York, NY: Alacra Store. Retrieved May 22, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Del-Monte-Foods-Inc-Downgraded-To-CCC-Outlook-Negative-On-Unsustainable-Capital-Structure-2011861>
  
US$ 150.00
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.