topstockalerts
Oct 21, 9:22 PM
S&P Global Ratings downgraded Lamb Weston Holdings to BB from BB+, pushing the processed-potato producer deeper into speculative-grade territory amid persistent leverage and profitability pressures. The agency cited ongoing restructuring expenses, input-cost inflation and aggressive promotional pricing, which continue to delay a meaningful earnings recovery.
S&P expects adjusted leverage to remain elevated at approximately 3.7x through fiscal 2028, significantly above its previous projections. Although revenue momentum and North American volume growth are improving, structural and operational challenges continue to weigh on profitability.
Lamb Weston’s “Focus to Win” restructuring initiative has generated approximately
$332 million in pretax charges through Q1 fiscal 2027, while savings have been largely offset by higher freight and ingredient costs, underutilized international plants and heavy customer promotions.
$LW
