Moody's reviews Dean Foods for upgrade

AP News
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Posted: Dec 22, 2009 4:52 PM

Moody's Investor Services on Tuesday placed the ratings of dairy products maker Dean Foods Co. on review for possible upgrade as a result of its improved performance and finances.

Moody's said the company's improved operating performance has generated better credit metrics, liquidity and cash flows. And it has taken several steps over the past few months to improve its capital structure, including issuing about $450 million in new equity earlier this year.

The rating agency said the review will focus on the anticipated stability from the improved credit metrics, the impact of rising milk prices on Dean's future and the company's strategy moving forward to maintain lower leverage levels.

The company last received a ratings outlook in May when its outlook was changed to positive from stable.