Research Update: United Natural Foods Inc.Outlook Revised To Positive From Negative On Solid Earnings; New Debt Rated - S&P Global Ratings’ Credit Research

Research Update: United Natural Foods Inc.Outlook Revised To Positive From Negative On Solid Earnings; New Debt Rated

Research Update: United Natural Foods Inc.Outlook Revised To Positive From Negative On Solid Earnings; New Debt Rated - S&P Global Ratings’ Credit Research
Research Update: United Natural Foods Inc.Outlook Revised To Positive From Negative On Solid Earnings; New Debt Rated
Published Oct 14, 2020
8 pages (3208 words) — Published Oct 14, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

U.S.-based wholesale food distributor United Natural Foods Inc. (UNFI) fiscal fourth-quarter results were strong, with fourth quarter sales growth of 8% on a comparable basis and improved profitability as the COVID-19 pandemic supports greater food-at-home demand. As a result, S&P Global Ratings is revising its outlook on UNFI to positive from negative. We are affirming all our existing ratings including our 'B' issuer credit rating. We are assigning our 'CCC+' issue-level and '6' recovery ratings to the company's proposed $400 million senior unsecured notes, which will partially repay the company's senior secured term loan. The positive outlook reflects improvement in performance trends will support S&P Global Ratings adjusted leverage to decline to around 5x in fiscal 2021 and annual free

  
Brief Excerpt:

...- U.S.-based wholesale food distributor United Natural Foods Inc. (UNFI) fiscal fourth-quarter results were strong, with fourth quarter sales growth of 8% on a comparable basis and improved profitability as the COVID-19 pandemic supports greater food-at-home demand. - As a result, S&P Global Ratings is revising its outlook on UNFI to positive from negative. We are affirming all our existing ratings including our 'B' issuer credit rating. - We are assigning our '###+' issue-level and '6' recovery ratings to the company's proposed $400 million senior unsecured notes, which will partially repay the company's senior secured term loan. - The positive outlook reflects improvement in performance trends will support S&P Global Ratings adjusted leverage to decline to around 5x in fiscal 2021 and annual free operating cash flow will likely exceed $150 million annually....

  
Report Type:

Research Update

Ticker
UNFI
Issuer
United Natural Foods, Inc.
GICS
Food Distributors (30101020)
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: United Natural Foods Inc.Outlook Revised To Positive From Negative On Solid Earnings; New Debt Rated" Oct 14, 2020. Alacra Store. May 03, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-United-Natural-Foods-Inc-Outlook-Revised-To-Positive-From-Negative-On-Solid-Earnings-New-Debt-Rated-2553570>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: United Natural Foods Inc.Outlook Revised To Positive From Negative On Solid Earnings; New Debt Rated Oct 14, 2020. New York, NY: Alacra Store. Retrieved May 03, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-United-Natural-Foods-Inc-Outlook-Revised-To-Positive-From-Negative-On-Solid-Earnings-New-Debt-Rated-2553570>
  
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