The rating reflects ConAgra Foods Inc.'s diverse portfolio of well-known packaged food brands, its good geographic coverage in the U.S., and its improving credit protection measures. These factors are partially offset by higher operating costs which negatively affected margins in the company's consumer foods segment (about one half of revenues), and Standard&Poor's Ratings Services' concern that the company's core packaged food business will be challenged to improve performance in the near term given the environment of rising commodity costs. On March 27, 2008, ConAgra Foods announced the sale of its trading and merchandising operations to Ospraie Special Opportunities Fund, an affiliate of Ospraie Management, for $2.1 billion. This operating segment has been a key driver of earnings over
