Junk credit rating looming if Kraft Heinz fails to turn itself around

CHICAGO, IL - MARCH 25: In this photo illustration, Heinz Tomato Ketchup is shown on March 25, 2015 in Chicago, Illinois. Kraft Foods Group Inc. said it will merge with H.J. Heinz Co. (Photo Illustration by Scott Olson/Getty Images)

By Luke Torrance  – Digital Producer, Pittsburgh Business Times

S&P Global Ratings issued a warning to Kraft Heinz on Friday: turn the company around by mid-2021 or risk being downgraded to a junk credit rating.

According to a Bloomberg report, S&P said the results for the struggling food company have been weaker than expected, and Kraft Heinz needs to cut debt relative to a measure of earnings. The credit grader expressed concern that the company will continue to struggle through the second half of 2019, and could face issues like higher commodity costs and lower stocking at retailers.

[ Read more in the Pittsburgh Business Times. ]

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