S&P: Ferrara Candy view to negative

Standard & Poor's said it revised the outlook on Ferrara Candy Co. Inc. to negative from stable.

The agency also affirmed the B corporate credit rating on Ferrara Candy. The issue-level rating on the company's senior secured term loan facility remains B with a recovery rating of 4, indicating that unsecured noteholders could expect average (30% to 50%) recovery in the event of a payment default.

On June 30, Ferrara Candy had roughly $484 million of total debt outstanding.

"The company's operating performance throughout 2013 was well below our expectations, resulting in a significant increase in leverage, and improvements in 2014 have been less than anticipated," S&P credit analyst Jeffrey Burian said in a news release.

"In addition, delays in realizing cost savings have contributed to reduced liquidity. The outlook change reflects our belief that the weak operating results could continue and could lead to weaker credit measures. We do not expect significant improvement in the company's credit measures this year."

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