S&P Global downgrades Hormel Foods outlook on high leverage

S&P Global Ratings has downgraded Hormel Foods Corp.'s outlook from stable to negative due to sustained high leverage, which has consistently been at or above 1.8x, exceeding their expectations for the company's rating. The ratings agency projects Hormel's leverage to remain near this level through fiscal 2026, with only modest improvements expected in subsequent years, falling short of previous deleveraging forecasts. This negative outlook is also influenced by contracting EBITDA margins, rising input costs, and declining organic net sales, reflecting ongoing challenges in restoring and sustaining lower leverage levels.