Ronald Neysmith
Ronald Neysmith
apply cash credit current debt expect flow free improve leverage measures rating reduce reduction term unable
We expect that Del Monte will apply its free cash flow to debt reduction over the intermediate term to improve credit measures to those more commensurate with the current rating. The rating could be lowered if Del Monte is unable to reduce leverage as planned.
ability commodity companies costs due economies food higher key larger limited maintain negatively offset packaged power prices proportion raise rising shifting small smaller test
The packaged food manufacturers' ability to raise and maintain prices to offset rising commodity costs will be a key test of the shifting of power to the retailer. Moreover, escalating costs have negatively impacted the small and midsize food companies more than their larger counterparts due to the smaller companies' higher proportion of fixed-costs and limited economies of scale.