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Moody’s Ratings upgraded Performance Food Group’s senior unsecured notes to Ba3 from B1 while affirming the company’s Ba2 corporate family rating and Ba2-PD probability of default rating. The speculative-grade liquidity rating remains SGL-2 with a stable outlook.
The upgrade reflects the significant repayment of borrowings under Performance Food’s asset-based revolving credit facility, which improves expected recovery rates for unsecured bondholders. Moody’s also cited solid operating performance and lower leverage following the 2024 acquisition of Cheney Brothers.
In fiscal 2026, revenue grew across all three segments, supported by market-share gains, including approximately 5.9% independent-case growth in Foodservice. Adjusted EBITDA also increased, helped by margin expansion and sourcing initiatives. Moody’s-adjusted debt/EBITDA fell to 4.1x from 4.6x, while EBITA/interest coverage stood at 2.6x.
$PFGC
