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 as well as its Cook's ham business and its seafood business. Divestitures of its cheese operations and remaining meats business is expected to occur in the next year. These divestitures allow the new management team to focus on the higher-margin packaged-foods segment as well as restructuring
