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
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