The agency cut its credit rating for Valeo Foods Friday, citing its high debt levels and reduced profitability following its leveraged buy-out by US private equity firm Bain Capital last year. S&P increased its estimate for Valeo’s debt load this year to 9x earnings, but said the company still had a stable outlook and wasn’t facing any refinancing risk. Read More“High operating cost inflation, the customary - albeit reducing - time lag in passing on price increases, and integration costs are pressuring Valeo Foods' profitability,” S&P said in a research note. Kantar found in its most recent grocery survey that Irish shoppers were responding to 5.5pc food inflation by cutting back on branded items. Dublin-headquartered Valeo was formed in 2010 through the merger of Origin Foods and Batchelors by private equity firm CapVest.

Source: Irish Independent June 24, 2022 13:23 UTC