S&P: McCormick still on watch

Standard & Poor's said McCormick & Co. Inc.'s A corporate credit and A-1 commercial paper ratings remain on CreditWatch with negative implications.

Ratings were placed on watch on Nov. 14 following the company's announcement that it signed a definitive agreement with Unilever to purchase the assets of Lawry's for $605 million in cash.

According to the agency, ratings reflect a strong business profile based on its worldwide leadership in supplying spices, seasonings and flavors to the food service segment, food processors and retail outlets.

These factors help mitigate the fact that McCormick's product line focus is narrower than that of other packaged-foods companies and the slow growth of the sector in which McCormick competes, the agency said.

For fiscal 2007, leverage is estimated at about 1.9 times.

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