Research Update: SUPERVALU Inc.Ratings Placed On CreditWatch Positive On Pact To Sell Food Retailing Assets Jan 13
- Language: English
- Published: January 2013
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
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Product Type: Research Update
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- Albertson's LLC