The ratings on Rosemont, Ill.-based US Foods Inc. (USF; formerly known as U.S. Foodservice Inc.) reflect Standard&Poor's Ratings Services' analysis that the company's financial risk profile will remain "highly leveraged" for the foreseeable future. This is based on our opinion the company has an aggressive financial policy and a significant debt burden. It is our opinion that the company's gross profit margin will remain under pressure because of continued weak demand and higher expenses, specifically elevated food costs; however, we expect 2012 credit measures to show slight improvement thanks to selling, general, and administrative (SG&A) cost reductions and some debt repayment. We forecast credit ratios will remain in line with the indicative ratios for our "highly leveraged" financial
