Standard & Poor's is taking ConAgra Foods Inc.'s ratings off of CreditWatch three days after the food maker withdrew its offer for Ralcorp Holdings Inc.
On Monday ConAgra, whose brands include Chef Boyardee and Healthy Choice, announced that it withdrew its $5.17 billion bid for the cereal and food maker. Ralcorp, which makes store-brand foods and Post cereal, has rejected several bids from ConAgra since March, including its latest, for $94 per share, made last month.
ConAgra gave Ralcorp until Monday to start discussions. Ralcorp rejected the offer for a second time on Monday, and ConAgra withdrew the bid.
Standard & Poor's put ConAgra on CreditWatch with negative implications in May. The ratings agency said Thursday that it took ConAgra off CreditWatch because it does not think the company will make any more bids for Ralcorp "at this time" and it expects ConAgra to maintain its credit measures near their current levels.
Standard & Poor's maintained ConAgra's "BBB," or investment grade, corporate credit rating and its "A-2" short-term and commercial paper ratings. Standard & Poor's outlook for the Omaha, Neb., company is stable.
ConAgra reported Tuesday that its fiscal first-quarter profit fell 42 percent, partly because costs rose in its consumer foods unit.
ConAgra shares rose 21 cents to $23.24, and Ralcorp shares fell 70 cents to $75.18 in afternoon trading.