|
Standard & Poors may now cut Ocean Spray Cranberries ratings NEW YORK, Dec 20 - Standard & Poor's single-'A' long-term corporate credit and senior debt ratings, its triple-'B'-plus preferred stock rating, and its 'A-1' short-term corporate credit and commercial paper ratings for Ocean Spray Cranberries Inc. remain on CreditWatch, where they were placed Sept. 30, 1999; however, the implications are revised to negative from developing. The rating action follows the decision by Ocean Spray's Board of Directors to not pursue the sale of all or part of the company after an internal review facilitated by outside consultants. Ocean Spray will be challenged to sustain recent market share improvements over the long term given its stepped-up level of promotional activities. Additionally, Ocean Spray is likely to name a new chief executive officer over the near term, which leads to some uncertainty regarding the long-term strategic direction and financial policies of the cooperative. Standard & Poor's will continue to monitor events and re-visit with management to discuss operating performance and financial strategies going forward. Ocean Spray is a marketing cooperative owned by cranberry and citrus growers in the U.S. and Canada. The company supplies blended juices and fresh cranberries and grapefruit. Ocean Spray handles roughly 70% of the North American cranberry crop and has a major position in the Florida grapefruit industry. Ocean Spray on Standard & Poors Credit Watch 9/30/99 Citing "uncertainties pertaining to Ocean Spray's long-term strategic direction and ongoing business challenges in its core cranberry operations," Standard & Poors announced today that Ocean Spray is on "Credit Watch with developing implications" for its single-A long term corporate credit and senior debt ratings, triple-B-preferred stock rating, and A-1 short-term corporate credit and commercial paper ratings. Should Ocean Spray be acquired by a higher rated corporation that assumed the rated obligations, the rating could be raised. If Ocean Spray was purchased by a lower rated company, the rating could be lowered. S&P notes that if the Ocean Spray market share continues to lose market share, the ratings could deteriorate further.
MOODY'S PLACES COMMERCIAL PAPER AND PREFERRED STOCK RATINGS OF OCEAN SPRAY UNDER REVIEW FOR POSSIBLE DOWNGRADEApproximately $200 million in securities affected.9/22/99 Citing the deterioration of the cooperative's operating performance and uncertainty regarding the company's future business configuration Moody's Investment Services has placed the commercial paper and stock ratings of the cooperative under review. "The review will assess the continuing impact of falling product prices, rising competition, and management instability on Ocean Spray's operations and financial profile, and whether or not there is likely to be any significant improvement in debt protection measures over the near to intermediate term. The review will also focus on the strategic options that Ocean Spray is considering." Read entire Moody's report here
|
Web tracker code