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, particularly in the company's consumer foods segment (about 59% of revenues), and Standard&Poor's concern that the company's core packaged food business will be very challenged to improve performance in the near term amid high commodity costs. On June 23, 2008, ConAgra completed the sale of its trading and merchandising operations to Ospraie Special Opportunities Fund, an affiliate of Ospraie Management. Proceeds were comprised of about $2.2 billion of cash, net of transaction costs, $550 million paid-in-kind debt securities issued
