S&P downgrades Ocean Spray

Standard & Poor's said it lowered its ratings on Ocean Spray Cranberries Inc., including the corporate credit rating to BBB+ from A-.

The outlook is stable.

Ocean Spray had about $695 million of outstanding debt as of March 1.

"The downgrade reflects our belief that lower projected earnings and very modest levels of discretionary cash flow will result in continued higher leverage levels," S&P credit analyst Chris Johnson said in a news release.

"In addition, we expect lower net proceeds and lower cranberry returns for its growers in part due to costs incurred for the company's plant relocation. Two consecutive large harvests have lowered the market value for the cooperative's core cranberry marketing segments, while the company's debt balances are elevated after three years of significant capital expenditures."

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