U.S.-based natural food distributor KeHE Distributors Holdings LLC's higher sales and higher earnings are driving an improvement in S&P Global Ratings-adjusted leverage. As a result, we raised all of ourratings on KeHE by one notch, including the issuer credit rating to 'B+' from 'B', the ABL revolver rating to 'BB' from 'BB-', and the second-lien secured notes rating, to 'B' from 'B-'. The stable outlook reflects our expectation that the company will continue to improve its sales despite some normalization of consumer behavior following the elevated demand during the pandemic. We also believe the company will continue to pursue a more prudent approach to acquisitions with debt to EBITDA remaining around 5x on a sustained basis. Despite higher working capital
