Moody's affirms Pierre Foods

Moody's Investors Service said it affirmed the B1 corporate family rating of Pierre Foods, Inc. and concurrently lowered the debt ratings on the bank credit facilities to Ba3 from Ba2.

Moody's said it also confirmed the B3 rating on the $125 senior subordinated notes, maturing 2012.

The outlook is stable.

The SGL-2 liquidity rating is unaffected, the agency noted.

Moody's added that this concludes the review for possible downgrade that began on November 6 following the company's announcement that it agreed to acquire substantially all of the assets of Zartic, Inc. and its affiliated distribution company, Zar Tran, Inc. for $94 million plus the assumption of certain liabilities, subject to post-closing adjustments.

Moody's said it affirmed Pierre's B1 corporate family rating following the announcement, but placed the ratings on all debt instruments under review for possible downgrade.

Pierre's B1 corporate family rating is supported by the company's strong historical growth that maps to an A rating led by new product introductions, increasing customer penetration and an ongoing trend in away-from-home meal consumption, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.