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, recent operating difficulties, and Standard&Poor's 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 the new management team 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, and continued SKU rationalization. This should result in a more centric focused organization from a decentralized one. Execution
