CORPORATESISSUER COMMENT 29 JULY 2015CAMPBELL SOUP COMPANY (CPB)Moodys Senior Unsecured Rating A3Moodys Outlook RU STABond-Implied Rating A3CDS-Implied Rating A3EDF-Implied Rating AaaAs of 7/28/2015ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.Market Signals ReviewCampbell Soup Co.: EDF- and Bond-Implied Ratings Rise Over the last three months the bond-implied and EDF'-implied ratings for Campbell Soup Company improved. The CDS-implied rating matches its level observed 90 days ago.The companys bond-implied rating advanced one notch to A3 (Figure 1). Even with the rise, it has slipped by five notches in five years. The EDF'-implied rating has moved up from Aa1 to Aaa. The last time the EDF-implied rating attained this highest possible level was in August of 2013. The CDS-implied rating has been at the A3 level, save for a brief dip to Baa1 in late May. Five years ago the CDS-implied rating was Aaa.FIGURE 1. CAMPBELL SOUP: MOODYS AND MARKET-IMPLIED RATINGS, LAST 90 DAYS (DAILY DATA)MOODY'S ANALYTICS CORPORATES2 29 JULY 2015 MARKET SIGNALS REVIEW : CAMPBELL SOUP CO.: EDF- AND BOND-IMPLIED RATINGS RISEOn July 22, the management of Campbell Soup Co. announced that its cost cutting measures were being implemented faster than earlier guidance suggested. Management raised its profit forecast for fiscal 2015 (to be announced on September 3), based on $75 million in cost savings within the current year sourced from the February cost cutting announcement, and $250 million in cost savings annually going forward. Management gave EPS guidance of $2.43 to $2.46 for fiscal 2015, an improvement from earlier guidance of $2.32 to $2.38. On their July 22 Investor Day management emphasized that the company continues to shift its portfolio t...
