Summary: Del Monte Corp. Aug 11

Standard & Poors, August 2011

Abstract
The ratings on San Francisco, Calif.-based Del Monte Foods Co. reflect its high debt levels, participation in the highly competitive packaged produce and pet food market segments, exposure to volatile commodity costs, and limited customer and geographic diversification. We view the company's financial profile as highly leveraged because of its significant debt burden and its aggressive financial policy. On March 8, 2011, Del Monte was acquired by an investor group including Kohlberg Kravis Roberts & Co. L.P., Vestar Capital Partners, and Centerview Capital L.P. Credit metrics deteriorated substantially after the transaction. Standard & Poor's Ratings Services estimates lease and pension adjusted total debt to EBITDA (excluding transaction expenses) is high, at about 6.6x at fiscal year end May 1, 2011,...

Companies mentioned in this report are: Del Monte Corp.
Action: Review

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.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

Del Monte Corp.

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