Fitch cuts Del Monte loan

Fitch Ratings said it took several rating actions on Del Monte Corp. The agency affirmed the company's long-term issuer default rating at B, its $750 million asset-based loan revolver at BB/RR1 and its $1.3 billion unsecured notes at CCC+/RR6.

Due to its recovery analysis, Fitch said it downgraded the company's $2.6 billion secured term loan B to BB-/RR2 from BB/RR1.

The agency also revised the outlook to negative from stable.

Fitch said the negative outlook reflects the fact that post LBO deleveraging is taking longer than Fitch had originally anticipated as total debt-to-operating EBITDA is likely to remain above 7x for 2013. The high leverage is due to weaker than expected operating performance in 2012 and potential margin pressure in 2013 due to high input costs, the agency said.

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