Research Update: Albertson's LLC Assigned 'B' Corporate Credit Rating; Debt Rated 'BB-' Feb 13

Standard & Poors, February 2013

Abstract
Albertson's LLC is purchasing Albertsons bannered stores, currently operated by SUPERVALU Inc., and is procuring a $1.05 billion term loan and a $1 billion asset based credit facility to partially fund the purchase. We expect more competitive pricing at the acquired stores to lead to margin pressures over the next year at the company. We are assigning a 'B' corporate credit rating to Albertson's LLC and a 'BB-' issue level rating and '1' recovery rating to the company's proposed $1.05 billion term loan and $1 billion asset based revolving credit facility. The negative rating outlook reflects the possibility of profit decreases to be greater than we expect, especially if the new pricing and merchandising strategies do not change the performance...

Companies mentioned in this report are:
- Albertson's LLC

Action: New Rating

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

- Albertson's LLC

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