US Foods Inc. Upgraded To 'BB+' From 'BB-' On Exit Of Financial Sponsors, Continued Deleveraging; Outlook Stable

Financial sponsors Clayton, Dubilier&Rice and KKR have sold their remaining ownership interest in US Foods Inc. (USF) and vacated their remaining board seats, which we view as a credit positive for USF. We believe USF will remain committed to its 3x leverage target, and approach it over the next year through a combination of profit growth and debt reduction. We are raising all of our ratings on the U.S.-based foodservice distributor, including our corporate credit rating to 'BB+' from 'BB-'. The stable outlook reflects our expectation that USF will initiate shareholder payments once it approaches its financial targets, resulting in adjusted leverage stabilizing in the mid- to high-3x area. CHICAGO (S&P Global Ratings) Dec. 14, 2017--S&P Global Ratings

...+ Financial sponsors Clayton, Dubilier & Rice and KKR have sold their remaining ownership interest in US Foods Inc. (USF) and vacated their remaining board seats, which we view as a credit positive for USF. + We believe USF will remain committed to its 3x leverage target, and approach it over the next year through a combination of profit growth and debt reduction. + We are raising all of our ratings on the U.S.-based foodservice distributor, including our corporate credit rating to '##+' from '##-'. + The stable outlook reflects our expectation that USF will initiate shareholder payments once it approaches its financial targets, resulting in adjusted leverage stabilizing in the mid- to high-3x area. CHICAGO (S&P Global Ratings) Dec. 14, 2017--S&P Global Ratings today raised its corporate credit rating on Rosemont, Ill.-based US Foods Inc. to '##+' from '##-'. The outlook is stable. At the same time, we raised our issue-level ratings on the company's $1.3 billion asset-backed revolving credit...

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