S&P ups Chobani view to stable

S&P said it affirmed its B corporate credit rating on Chobani Global Holdings LLC and revised the outlook to stable from negative.

At the same time, S&P said it affirmed the B issue-level, with a 3 recovery rating on the company's senior secured facility (including a $150 million revolver maturing in 2022 and an $825 million first-lien term loan due in 2023), reflecting an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of payment default.

S&P also affirmed its CCC+ issue-level, with a 6 recovery rating on the company's $530 million senior unsecured notes due in 2025, indicating an expectation for a negligible recovery (0%-10%; rounded estimate: 0%) recovery in the event of payment default.

The outlook revision to stable from negative reflects its ability to increase revenues mainly through its three key product categories – traditional yogurt cups, Flips and multiserve units. That enabled it to increase adjusted EBITDA by about 40% in fiscal year 2017 from fiscal 2016 and generate more than $50 million of free cash flow, S&P said in a news release.

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