{
  "id": 7856913,
  "title": "Moody’s upgrades Performance Food notes on debt paydown",
  "url": "https://urgent.news/2026/09/16/moodys-upgrades-performance-food-notes-on-debt-paydown",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-16T19:47:59.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/moodys-upgrades-performance-food-notes-on-debt-paydown-93CH-4904389"
  },
  "original_language": "en",
  "account": "Moody's Ratings upgraded Performance Food Group's senior unsecured notes rating to Ba3 from B1 on Monday. The firm confirmed the company's Ba2 corporate family rating and Ba2-PD probability of default rating. The speculative grade liquidity rating stands at SGL-2 with a stable outlook. This upgrade is attributed to the significant reduction in borrowings through Performance Food's asset based revolving credit facility, which enhances predicted recovery rates for the company's unsecured notes. This reflects the company's solid operating performance and debt reduction since its acquisition of Cheney Brothers in 2024. In fiscal 2026, Performance Food reported revenue growth across all segments, driven by market share gains, with about 5.9% independent case growth in the Foodservice sector and adjusted EBITDA growth, bolstered by margin expansion and procurement initiatives. Moody's debt/EBITDA ratio dropped to 4.1x from 4.6x in the previous year, while EBITA/interest expense improved to 2.6x. The ratings agency anticipates further enhancements in credit metrics due to the repayment of revolver borrowings, coupled with higher earnings from ongoing volume growth, strong national account performance, new customers in the convenience sector, and procurement synergies. Over the next 12-18 months, Moody's forecasts a decrease in debt/EBITDA and EBITA/interest to 3.5x and 3.2x, respectively. Performance Food's Ba2 corporate family rating is based on the company's scale and market leadership as one of the top three distributors in the relatively recession-resistant food distribution industry in North America. The firm has more than tripled its revenue and EBITDA since June 2019 through acquisitions and organic growth. The company has committed to reducing leverage, which stood at 3.5x as of June 2026, and has stated that deleveraging remains a priority.",
  "summary": null,
  "key_points": [
    "Moody's upgraded Performance Food Group's senior unsecured notes rating to Ba3 from B1.",
    "The firm confirmed Ba2 corporate family rating and Ba2-PD probability of default rating.",
    "Company's debt/EBITDA ratio dropped to 4.1x from 4.6x in 2025."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}