Niche player in the intensely competitive wholesale grocery industry. High customer concentration, with its top three customers accounting for approximately 40% of sales. Expanding presence in the on-trend, growing natural and organic grocery channel. Leverage expected to improve to the high-5x area through fiscal year 2018 on EBITDA expansion. Modest free operating cash flow (FOCF) generation. Historically aggressive financial policy. Employee stock ownership plan (ESOP) ownership structure. The stable outlook on KeHE Distributors Holdings LLC reflects S&P Global Ratings' view that adjusted leverage will improve to the high-5x area over the next year as the company focuses on organic growth, reducing operating expenses, and deleveraging through improving profitability. We also expect the company to maintain adequate liquidity. We could lower
