CDS liquidity for Hillshire has risen over the past month, from trading in the 30th regional percentile to the 19th, a sign of growing pricing uncertainty. Fitch Tuesday lowered Hillshire's Long-term Issuer Default Rating three notches to 'BB' from 'BBB' and also maintains a private rating on Pinnacle.
The Pinnacle buy is valued at
Tuesday's downgrade reflects Fitch's pro forma leverage estimate and assumption that the transaction has a high probability of completion. The Board of Directors for both companies unanimously approved the transaction. Hillshire expects the deal to close by
Additional information is available on www.fitchratings.com.
The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings.
Source: Fitch Solutions
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