Fitch upgrades Heinz

Fitch Ratings said it upgraded the long-term issuer default ratings, bank facilities and senior debt of H.J. Heinz Co. and H.J. Heinz Finance Co. to BBB+ from BBB and H.J. Heinz Finance's series B preferred stock to BBB- from BB+. The F2 short-term issuer default ratings were affirmed, and the outlook is stable.

The agency said the upgrade reflects its view that Heinz is likely to maintain its consistent, conservative financial strategy, generate meaningful free cash flow and keep leverage relatively steady in the mid 2 times range. According to Fitch, Heinz's strategies that support the upgrade include its commitment to minimal share repurchases and use of overseas cash to fund acquisitions.

Credit positives include the company's solid cash flow generation, substantial liquidity, diversification across product lines and geography as well as leading market positions in major product categories, the agency said.

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