Fitch: U.S. and EMEA Package Food Credit Quality Faces Manageable Challenges in 2015

Fitch Ratings' credit outlook for the U.S. and EMEA packaged food industry is stable as challenges are balanced with areas of potential improvement in 2015. Food companies will focus on accelerating weak top line and volume growth with product innovation that resonates better with today's time-constrained and increasingly health conscious consumers.

Fitch expects modest improvement in the U.S. operating environment based on projected higher GDP growth, lower unemployment and gas prices. However, the eurozone remains weak as consumer confidence is still fragile, unemployment is high and central and eastern Europe have geopolitical disturbances.

Fitch believes the greatest risk to U.S. food companies' credit profiles is higher leverage from debt-financed acquisitions or activist investors driving more shareholder friendly actions. Food companies are generally anticipating modest input cost inflation in 2015, which can be offset with productivity initiatives.

An overview of these challenges and the associated impact on U.S. and EMEA packaged food companies' credit quality are discussed in Fitch's inaugural 'U.S. and EMEA Corporate Dashboard' published today.

The full 'U.S. and EMEA Corporate Dashboard' is available at 'www.fitchratings.com' or by clicking on the link.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: Packaged Food Dashboard (U.S. and EMEA)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=839669

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