UPDATE: S&P Upgrades Keurig Green Mountain from BB- to BB; Outlook Stable

Standard & Poor's Ratings Services today raised its corporate credit rating on Waterbury, Vt.-based Keurig Green Mountain Inc.

to 'BB' from 'BB-'. We also raised the issue-level ratings on the company's senior secured credit facilities to 'BBB-' from 'BB+'. The recovery rating remains '1', indicating our expectations for very high (90% to 100%) recovery in the event of a payment default. At the same time, we removed all of our ratings on the company from CreditWatch with positive implications, where they had been placed on Feb. 7, 2014, following the collaboration agreement announcement. The outlook is stable. "The upgrades reflect our belief that this transaction strengthens Keurig's business risk profile," said Standard & Poor's credit analyst Bea Chiem. We estimate that as of Dec. 28, 2013, the company had roughly $322 million in operating lease-adjusted debt outstanding.