Research Update: US Foods Inc.Issuer Credit Rating Affirmed, Outlook Negative; Term Loan Rating Lowered

Foodservice distributor US Foods Inc. (USF) intends to move forward with $1.5 billion in term loan financing, which will in part fund its pending acquisition of Services Group of America's Food Group Of Companies (SGAFG). We believe regulatory approval of the acquisition will occur in the coming weeks, and that any required asset sales will not materially impact the deal. We are affirming our 'BB+' issuer credit rating on USF. The outlook remains negative. We are assigning our 'BB+' issue-level rating to the company's proposed $1.5 billion term loan B. We are lowering our issue-level rating on the company's existing $2.2 billion term loan B to 'BB+' from 'BBB-', and removing it from CreditWatch, where we placed it with negative

...- Foodservice distributor US Foods Inc. (USF) intends to move forward with $1.5 billion in term loan financing, which will in part fund its pending acquisition of Services Group of America's Food Group Of Companies (SGAFG). - We believe regulatory approval of the acquisition will occur in the coming weeks, and that any required asset sales will not materially impact the deal. - We are affirming our '##+' issuer credit rating on USF. The outlook remains negative. - We are assigning our '##+' issue-level rating to the company's proposed $1.5 billion term loan B. - We are lowering our issue-level rating on the company's existing $2.2 billion term loan B to '##+' from '###-', and removing it from CreditWatch, where we placed it with negative implications on Aug. 1, 2018. - We are also affirming our '##' issue-level rating on the company's $600 million senior unsecured notes and removing it from CreditWatch. - The negative outlook reflects the potential that we could lower our rating on USF...

Research Update