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

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

Research Update: Del Monte Foods Inc. Downgraded To 'CCC-', Outlook Negative, On Unsustainable Capital Structure - S&P Global Ratings’ Credit Research
Research Update: Del Monte Foods Inc. Downgraded To 'CCC-', Outlook Negative, On Unsustainable Capital Structure
Published Mar 23, 2018
8 pages (2565 words) — Published Mar 23, 2018
Price US$ 225.00  |  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. On March 23, 2018, S&P Global Ratings lowered its corporate credit rating on Walnut Creek, Calif.–based Del Monte Foods

  
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....

  
Report Type:

Research Update

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

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: 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/Research-Update-Del-Monte-Foods-Inc-Downgraded-To-CCC-Outlook-Negative-On-Unsustainable-Capital-Structure-2011862>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: 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/Research-Update-Del-Monte-Foods-Inc-Downgraded-To-CCC-Outlook-Negative-On-Unsustainable-Capital-Structure-2011862>
  
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