Chilled food and bakery producer Bakkavör has seen its corporate credit rating rise from a B- (positive outlook) to B (stable).

Standard & Poor (S&P) updated its research and took into account the company’s improved earnings and cash flow performance, to upgrade the score.

Agust Gudmundsson, Bakkavör chief executive, said: “I am delighted with this recognition by S&P. It is testament to the hard work, energy and commitment of everyone at Bakkavör over recent years, and the consequent improvements to the financial strength of the business.”

In February, Bakkavör announced that full-year like-for-like revenues increased 4% to £1.72bn for 2014 for the 52 weeks ending 4 January 2015.

It claims to be the number one producer by value in 13 of the 16 categories of chilled food it supplies. Products include ready meals, pizzas, salads, desserts, soups and sauces. Customers include Tesco, Marks & Spencer, Sainsbury’s, Waitrose, Asda and Morrisons, which sell Bakkavör’s products to consumers under their respective retailer brands.