U.S.-based US Foods Inc. has improved profitability and credit ratios through pension settlements and restructuring initiatives, notwithstanding the payment of a leveraged dividend to its parent, US Foods Holding Corp. The company's operating performance was relatively stable during last year's potentially disruptive failed Sysco merger, and we expect profitability will improve over the next few years. We are affirming our 'B' corporate credit rating on the company and raising our issue-level rating on its term loan B to 'B' from 'B-', based on revised usage assumptions on its revolving credit facilities. The stable outlook reflects our expectation that US Foods will maintain steady operating performance in a difficult and highly competitive environment, enabling the company to modestly improve profitability and
