Moody's affirms Tyson Foods

Moody's Investors Service said it affirmed Tyson Foods, Inc.'s corporate family and probability-of-default ratings at Ba3, $1 billion senior secured bank revolving credit agreement and senior secured industrial revenue bonds at Ba2 (loss-given-default assessment adjusted to LGD2, 27% from LGD3, 31%), $960 million senior unsecured guaranteed notes due 2016 at Ba3 (LGD4, 54%), senior unsecured unguaranteed debt at B2 (LGD5, 85%) and speculative-grade liquidity rating at SGL-4.

Tyson Fresh Meats, Inc.'s senior guaranteed debt was affirmed at Ba2 (LGD3) with a revised loss-given-default rate of 38% (formerly 31%).

The outlook remains negative.

The agency said these rating actions incorporate the recent amendment to Tyson's revolver, which provides covenant relief over the next several quarters and greater collateral for some debt instruments, and the affirmation of the bank facilities and bonds incorporates the fact that there have been no changes in the rankings of the debt instruments in the liability waterfall.

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