U.S.–based ConAgra Foods Inc. announced that it has entered into a definitive agreement to sell its private-label business to TreeHouse Foods Inc. for roughly $2.7 billion. The company stated that proceeds would be applied primarily to debt reduction, but an amount has not been specified. We believe that the company's profitability and credit protection measures could improve with the divestiture of the underperforming business. We are maintaining the ratings on CreditWatch with developing implications, including our 'BBB-' corporate credit and our 'A-3' short-term corporate credit and commercial paper ratings. The CreditWatch listing reflects our belief that we could lower, raise, or affirm the ratings following our review. We will review the ratings following receipt of more information regarding the company's
