Fitch Ratings Inc. cut the credit rating of Kraft Heinz Co. (KHC) to below investment grade on Friday. Only one more rating agency needs to downgrade its bonds into junk before Kraft's bonds qualify as a "fallen angel," when an issuer loses its investment-grade credit rating. The worry among investors is that insurers, pension funds and other mutual funds that have strict restrictions barring them from owning risky high-yield debt will be forced to sell the bonds, spurring additional losses. Though, the food and beverage company reported ( ) fourth-quarter profit that beat expectations on Thursday, Bank of America analysts suggested the company's decision not to cut its dividend may weigh on its creditworthiness. Shares of Kraft are down 7.2% this week.
-Sunny Oh; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 14, 2020 09:53 ET (14:53 GMT)
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