...- Del Monte Foods Inc.'s operating performance through the third quarter of fiscal 2024 came in below our forecast, leading us to revise downward our base-case forecast for fiscal 2024 and 2025. - We believe operating underperformance and high inventory balances will keep the company's asset-backed (ABL) facility borrowings higher than previously expected. We do not believe Del Monte has enough liquidity to fund the purchases of inventories during its upcoming pack season. - As a result, we lowered our issuer credit rating to '###+' from 'B-' because the company needs additional liquidity; it needs to sell through its existing inventory; and S&P Global Ratings-adjusted leverage will remain weak at above 10x, and free operating cash flow (FOCF) will remain negative through the first half of fiscal 2025. - We also lowered our issue-level rating on its $725 million first-lien term loan to '###+' from 'B-'. The recovery rating remains '4', reflecting our expectation for average (30%-50%; rounded...
