S&P revises Sysco outlook to Negative

S&P Global Ratings affirmed all its ratings on Sysco (SYY), including the ‘BBB’ issuer credit and ‘A-2’ short-term commercial paper ratings. “We revised the outlook to negative from stable, reflecting the potential for a lower rating if we believe S&P Global Ratings-adjusted leverage will remain above 4x for two years following the close of its acquisition. The transaction is occurring when the probability of a U.S. recession over the next 12 months is increasing due to rising energy prices. This could delay projected credit ratio improvement, especially if consumer spending at restaurants weakens or Sysco experiences integration difficulties.”