The ratings reflect ConAgra Foods Inc.'s diverse portfolio of well-known 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 Ratings 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 as well as restructuring the organization--improving the company's business processes, manufacturing and marketing capabilities-—from a decentralized to a more centric focus organization. Execution risk is a rating concern. These divestitures were consistent with ConAgra
