(Tiper Stock Exchange) – Fitch Ratings has confirmed the Long-Term Issuer Default Ratings (IDR) of Tyson Foodsan American multinational operating in the food sector, in “BBB“. The outlook is stable.
Analysts say the rating reflects the strong company profile of Tyson with significant size, product diversification with market share leadership positions in beef, chicken, pork and convenience foods, broad channel diversification across retail, food service and international markets and a coherent financial policy.
Ratings are constrained byexposure to Tyson’s volatile, low-margin protein commodity business.
The rating confirmation considers the expectation that EBITDA leverage will return to approximately 2.5x by mid-2025, after EBITDA leverage has peaked in the low-to-mid range of 4x for fiscal 2023, driven by pressures market cycles. Fitch predicts that Tyson will remain disciplined in its capital allocationincluding mergers and acquisitions and share buybacks, up to the restoration of balance sheet strength.