Good market position as no. 2 competitor in a historically stable industry. Highly leveraged financial risk profile; Operates in a low margin industry; and Some exposure to food and fuel cost volatility. The ratings on U.S. Foodservice Inc. (USF) reflect Standard&Poor's Ratings Services' opinion that the highly leveraged food service distributor's profit margins will likely deteriorate over the near term due to potentially lower demand and higher expenses, specifically escalating food and fuel costs; however, credit measures should remain near current levels due to interest cost savings and modest debt repayment associated with its refinancing. Nevertheless, pro forma for the recent refinancing, the company's credit protection measures are weak for the 'B' rating category medians, including leverage in
