S&P lifts Wells view to stable

Standard & Poor’s said it revised the outlook on Wells Enterprises Inc. to stable from negative.

The agency also said it affirmed all of the company’s ratings, including its B+ corporate credit rating.

The outlook revision reflects an expectation that the company’s operating performance has stabilized and will improve over the next 12 months, thanks to cost saving initiatives, customer and product rationalization and increased pricing, S&P said.

This is despite its participation in the competitive and declining ice cream category, the agency said.

S&P also said it expects declining dairy prices will improve the company’s profitability in 2015, leading to expanded EBITDA margins.

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