Hershey Company (The) -- Moody's assigns A1 rating to Hershey's new bonds; outlook stable

Moody's Investors Service, ("Moody's") today assigned A1 ratings to The Hershey Company's ("Hershey") planned $1 billion senior unsecured notes with tenors of 5, 10 and 30 years. Hershey's A1 credit profile is supported by its stable demand that supports sizeable free cash flows through business cycles, strong brand portfolio and leading position in the U.S. chocolate confectionary market, good liquidity, strong profit margins, and conservative financial policy. The rating is constrained by some product and geographic concentration, certain challenges in its efforts to expand internationally, and an elevated leverage resulting from the 2018 acquisitions of Amplify Snack Brands, Inc. and Pirate brands in 2018 as well as ONE brands in 2019.