Research Update: Del Monte Foods Inc. Downgraded To 'CCC+' Due To Underperformance And High Leverage; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: Del Monte Foods Inc. Downgraded To 'CCC+' Due To Underperformance And High Leverage; Outlook Negative

Research Update: Del Monte Foods Inc. Downgraded To 'CCC+' Due To Underperformance And High Leverage; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: Del Monte Foods Inc. Downgraded To 'CCC+' Due To Underperformance And High Leverage; Outlook Negative
Published Mar 16, 2017
8 pages (3077 words) — Published Mar 16, 2017
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Del Monte Foods Inc.'s operating performance through the third quarter of 2017 came in below its budget and our forecast, despite its strongest sales and cash flow period during the holiday season, leading us to revise our base-case forecast for 2017 downward. We are lowering our corporate credit rating to 'CCC+' from 'B-' because of our expectations of continued underperformance, causing financial leverage to remain weak at above 10x and free operating cash flow to remain negative through the end of fiscal 2017. We are lowering our ratings on the first- and second-lien senior secured term loans to 'CCC+' from 'B-' and 'CCC-' from 'CCC', respectively. Recovery ratings remain unchanged. The negative outlook reflects the potential for a lower rating

  
Brief Excerpt:

...Del Monte Foods Inc.'s operating performance through the third quarter of 2017 came in below its budget and our forecast, despite its strongest sales and cash flow period during the holiday season, leading us to revise our base-case forecast for 2017 downward....

  
Report Type:

Research Update

Issuer
Del Monte Foods, Inc.
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Del Monte Foods Inc. Downgraded To 'CCC+' Due To Underperformance And High Leverage; Outlook Negative" Mar 16, 2017. Alacra Store. May 22, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Del-Monte-Foods-Inc-Downgraded-To-CCC-Due-To-Underperformance-And-High-Leverage-Outlook-Negative-1816287>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Del Monte Foods Inc. Downgraded To 'CCC+' Due To Underperformance And High Leverage; Outlook Negative Mar 16, 2017. New York, NY: Alacra Store. Retrieved May 22, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Del-Monte-Foods-Inc-Downgraded-To-CCC-Due-To-Underperformance-And-High-Leverage-Outlook-Negative-1816287>
  
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