SPGI · News · 20260911N

Ratings Performance

S&P Global Inc. · 2026-09-11 · Importance 25 · Surprise 42

S&P Global Ratings downgraded Hormel Foods Corp.’s outlook from stable to negative because leverage has remained at or above 1.8x. The agency expects leverage to remain near that level through fiscal 2026, with only modest improvement afterward, below its prior deleveraging expectations. The outlook also reflects contracting EBITDA margins, rising input costs, and declining organic net sales, which are hindering Hormel’s ability to reduce leverage.

Key facts

• S&P Global Ratings projects Hormel Foods' leverage to remain near 1.8x through fiscal 2026. source
• S&P Global Ratings has downgraded Hormel Foods Corp.'s outlook from stable to negative. source
• S&P Global Ratings said the negative outlook for Hormel Foods is influenced by contracting EBITDA margins, rising input costs, and declining organic net sales. source
• S&P Global Ratings said Hormel Foods' leverage has consistently been at or above 1.8x. source