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Research Update: Sara Lee Corp. Oct 04

  • ID: 1826642
  • October 2004
  • Standard & Poors
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On Oct. 29, 2004, Standard & Poor's Ratings Services placed its 'A+' long-term corporate credit and senior unsecured debt ratings on Sara Lee Corp. and its wholly owned subsidiary, The Earthgrains Co., on CreditWatch with negative implications. Negative implications means that the ratings could be lowered or affirmed following completion of the review. At the same time the 'A-1' short-term corporate credit and commercial paper ratings on Sara Lee were affirmed. About $3.5 billion of rated debt of Chicago, Ill.-based Sara Lee is affected. Credit protections measures remain very weak for Sara Lee's current 'A+' corporate credit rating despite revenues and operating income improving by 4% (3% due to favorable currency, however, overall volumes declined by 2%) and 3.5% (driven...

Companies mentioned in this report are: Sara Lee Corp.,Earthgrains Co. (The)
Action: On CreditWatch:Negative

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

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Sara Lee Corp.,Earthgrains Co. (The)

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