U.S.-based ConAgra Foods Inc. has increased its unsolicited offer to acquire Ralcorp Holdings Inc. We believe ConAgra's credit profile could weaken because the proposed acquisition would add meaningful debt. Our ratings on ConAgra and Ralcorp remain on CreditWatch with negative implications, where they were placed on May 4, 2011, following ConAgra's initial unsolicited all-cash proposal to acquire Ralcorp. On Aug. 15, 2011, Standard&Poor's Ratings Services stated that its 'BBB' corporate credit, its 'A-2' short-term and commercial paper rating, and other ratings on Omaha-based ConAgra Foods Inc. remain on CreditWatch with negative implications, meaning that we could either lower or affirm the ratings following the completion of our review. Our 'BBB-' corporate credit and other ratings on St. Louis-based
