The ratings reflect ConAgra Foods Inc.'s diverse portfolio of leading packaged-food brands, as well as the company's good geographic coverage and solid liquidity position. These factors are partially offset by the company's moderate debt leverage and Standard&Poor's Rating Services' expectation the company will be acquisitive in the intermediate term. Standard&Poor's expects ConAgra Foods' operating margins to improve now that it has divested its lower margin commodity protein and agricultural businesses. These divestitures allow management to focus on the higher margin packaged-foods segment. On Nov. 23, 2003, ConAgra Foods completed the divestiture of its fresh chicken division, the fourth-largest chicken producer in the U.S. The division was sold to Pilgrim's Pride Corp. for a total transaction valuation
