Fitch revises Ocean Spray to positive

Fitch Ratings said it affirmed Ocean Spray Cranberries, Inc.'s issuer default rating at BBB- and revised the outlook to positive from stable.

The outlook revision reflects Ocean Spray's lower than expected leverage for fiscal 2016, a reduction in cash distribution to its members, improved alignment of grower-owner payment schedules to pool earnings, a decline in capital spending and stable profitability supported by a strengthening in gross margins, the agency said.

Consequently, Fitch believes Ocean Spray will generate cash flow that can be used for debt reduction to further strengthen the credit profile over the rating horizon.

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