Skip to content
Subscriber Only

Kraft Heinz’s Junk Downgrade Rekindles Bond Market Jitters

  • Packaged-food company cut to high yield by Fitch and S&P
  • More BBB debt has some investors wary that others may follow
Video player cover image
Kraft Heinz Shares Sink After Sales Miss Again
Updated on

Kraft Heinz Co., the iconic food giant created in a merger five years ago, was downgraded to junk by two credit raters, raising fresh worries among investors that a slowing economy could threaten the broader corporate bond market.

The packaged-food company was cut one level to BB+ by S&P Global Ratings, following Fitch Ratings earlier Friday. It will now become a so-called fallen angel, taking it out of investment-grade indexes.