Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (5841)	2/14/2020 11:53:31 AM
From: E_K_S	1 Recommendation Recommended By richardred Read Replies (1) \| Respond to of 7239

Re: BGS and other food companies - KHC, GIS, BGS & CAG this news does not bode well for the sector Kraft Heinz falls to junk status at Fitch Ratings Feb. 14, 2020 9:49 AM ET\|About: The Kraft Heinz Company (KHC)\|By: Clark Schultz, SA News Editor Fitch Ratings lowers its long-term default rating on Kraft Heinz ( KHC -2.1%) to BB+ from BBB-, while setting a Stable outlook. The BB level at Fitch is non-investment grade (junk). Fitch notes that Kraft's decision to maintain its annual dividend of $1.60 per share removed a near term deleveraging option. "The downgrade reflects Fitch's view that Kraft's leverage will remain elevated above 4x for a prolonged period due to ongoing EBITDA challenges and limited near term debt reduction potential. Following Kraft's commentary around 2020 operating headwinds which would suggest a nearly 8% EBITDA decline and its commitment to maintain its dividend as announced Feb. 13, 2020, Fitch estimates the company may need to divest up to 20% of its projected 2020 EBITDA to support debt reduction necessary to reduce leverage to below 4.0x versus 2019 leverage of 4.8x."