NEW YORK (Standard&Poor's CreditWire) March 16, 1999--Standard&Poor's today raised its corporate credit rating for U.S. Foodservice to double-'B' from double-'B'-minus and its subordinated debt rating to single-'B'-plus from single-'B'. All ratings are removed from CreditWatch, where they were placed with positive implications on Nov. 20, 1998. The outlook is positive. The upgrade reflects significantly improved credit measures that have been driven by realized synergies following the merger with Rykoff-Sexton, Inc. Overall, the ratings reflect U.S. Foodservice's position as one of the largest players in the growing, but fragmented, food service distribution industry; solid profitability measures; and an experienced management team. These factors are offset by the firm's leveraged financial position in its low-margined, highly competitive industry;
