Moody's may cut Windsor

Moody's Investors Service said it placed on review for possible downgrade the ratings of Windsor Quality Food Co. Ltd., including the company's Ba3 corporate family and probability-of-default ratings and its Ba3 $100 million senior secured revolving credit agreement due 2011 and senior secured term loan (originally $160 million) due 2012.

The review is based on Windsor's challenge in maintaining its credit metrics because of rising beef and cheese costs, according to the agency.

Leverage is affected by lower profits and also by the acquisition of a strategically important new plant site in Mississippi, Moody's said. Credit measures for the 12 months ended June 30, with weaker-than-expected ratio of debt to EBITDA at 4.7 times, the agency said.

Moody's review will focus on the company's initiatives to restore profit margins amid rising commodity prices, its efforts to sustain sales growth and improve efficiency, Moody's said.

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