U.S.-based KeHE Distributors Holdings LLC's financial results are tracking ahead of our expectations due to solid execution and favorable sector trends. We expect the company will expand faster than the food wholesaler industry, supported by strong natural, organic and fresh product demand and market share gains, and remain on a path toward deleveraging through earnings growth in the coming year. We are raising our issuer credit rating on KeHE to 'B' from 'B-'. Concurrently, we are raising our issue-level ratings on the asset-backed loan (ABL) to 'BB-' from 'B+' and on the second-lien secured notes to 'B-' from 'CCC+'. The stable outlook reflects our expectation for positive operating momentum to continue and our belief that the company will pursue a
