U.S.-based natural food distributor KeHE Distributors Holdings LLC's (KeHE) operating performance has exceeded our expectations for fiscal-year 2020 with higher sales driving higher earnings. We are affirming all ratings, including the 'B' issuer credit rating on KeHE and revising our outlook on the company to positive from stable. The positive outlook reflects the possibility that we could raise our ratings on KeHE over the next 12 months if operating performance continues to improve and more moderate acquisition activity keeps leverage below 5x on a sustained basis. In particular, over the past few years, the company has successfully achieved operational efficiencies, integrating past acquisitions while growing sales. KeHE has focused on growing its customer pipeline as well as existing customers, optimizing
