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Bulletin: Ratings On Del Monte Foods Unaffected By Seafood Business Sale Jun 08
Standard & Poors, June 2008
Abstract
NEW YORK (Standard & Poor's) June 30, 2008--Standard & Poor's Ratings Services said today that its ratings and outlook on San Francisco, Calif.-based Del Monte Foods Co. (BB-/Negative/--) remain unchanged following the announcement that the company has entered into an agreement to sell its seafood business, including Starkist, to Dongwon for $363 million, subject to a working-capital adjustment. The company will apply net after-tax proceeds of about $300 million to debt reduction. While we view the debt repayment favorably, we remain concerned about near-term limited covenant cushion on Del Monte's bank credit agreement. Upon closing, Del Monte will enter into a two-year agreement with Dongwon to provide operational services. Income from this agreement and anticipated reduced interest expense is expected...
Companies mentioned in this report are: Del Monte Corp.
Action: Bulletin
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.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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