Hormel Foods Corporation agreed to acquire Brakebush Brothers, LLC, identified as Brakebush Brothers Inc. in the ratings report, from the Brakebush family for approximately $1.055 billion in a debt-financed transaction expected to close in the first quarter of fiscal 2027, subject to customary conditions including regulatory approval. S&P Global Ratings downgraded Hormel’s issuer credit and senior unsecured note ratings to 'BBB+' from 'A-', while Moody’s Ratings cut its senior unsecured debt rating to A3 from A2. The agencies cited higher leverage, inflation, soft retail volumes, subdued operating earnings, high dividends and execution risks, although they recognized the strategic value of Brakebush’s foodservice-focused, contracted cost-plus fixed-price business. S&P projects pro forma adjusted leverage will rise to 2.5x at closing from 1.8x, above Hormel’s 1.5x-to-2.0x target range for more than two years, while Moody’s estimates debt-to-EBITDA leverage at 2.8x. Both agencies assigned stable outlooks, citing liquidity and expectations that cash flow will support debt reduction.