Summary: U.S. Foodservice Inc. Jan 12
Standard & Poors, January 2012
Abstract
The ratings on Rosemont, Ill.-based U.S. Foodservice Inc. (USF) reflect Standard & Poor's Ratings Services' business risk profile assessment of "fair" and financial risk profile assessment of "highly leveraged," as our criteria define the terms. It is our opinion that the food service distributor's profit margins will remain under pressure due to continued weak demand and higher expenses, specifically escalating food and fuel costs; however, credit measures should remain near current levels due to interest cost savings and the lower amount of debt associated with its May 2011 refinancing. Nevertheless the company's credit protection measures are weak for the 'B' rating category medians, including leverage in the high-7x area and a ratio of funds from operations (FFO) to total debt...
Companies mentioned in this report are:
- US Foods Inc.
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.
- US Foods Inc.
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