S&P: Dean Foods unaffected

Standard & Poor's said the ratings and outlook on Dean Foods Co. and its wholly owned subsidiary, Dean Holdings Co., (BB+/positive/--) will not be affected following the company's announcement that it revised its earnings outlook for the remainder of 2004 and increased its share repurchase authorization by $200 million.

Although S&P said it views the current margin pressure in Dean Foods' dairy group as a short-term occurrence due to the volatility in raw milk prices this year, S&P will continue to monitor the situation to assure that there has not been a secular change in the retail environment in which the company operates.

The dairy group's volumes throughout this year's record price increases and declines have remained very strong. In addition, financial measures remain appropriate for the ratings, according to S&P.

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