U.S. pharmacy operator Rite Aid is refinancing a portion of its existing first- and second-lien secured debt to extend maturities and lower its interest cost. We are assigning a 'B+' issue rating and '1' recovery rating to the proposed $900 million first-lien term loan due 2020 and a 'B-' issue rating and '3' recovery rating to the proposed $470 million second-lien term loan due 2020 We are affirming all ratings on Rite Aid, including the 'B-' corporate credit rating. The stable outlook reflects our expectation that Rite Aid's financial risk profile remains "highly leveraged" despite modest improvement in its credit protection measures from recent improvements in operating results. On Feb. 4, 2013, Standard & Poor's Ratings Services assigned its 'B+'...
Companies mentioned in this report are:
- Rite Aid Corp.
- Rite Aid Lease Management Co.
Action: New Rating
Action: Outlook: Stable
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Product Type: Research Update
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