Moody's downgrades Winn-Dixie passthrough

Moody's Investors Service downgraded the ratings of three classes of Winn-Dixie Pass-Through Trust Certificates, Series 1999-1 to B3 from B1.

Moody's said the certificates were downgraded to B3 based on the support of the triple net leases guaranteed by Winn-Dixie Stores Inc., which was downgraded to B3 by Moody's on July 8.

Moody's stated that the downgrade to Winn-Dixie Stores was prompted by its belief that the recent deterioration in revenue, margins and debt protection measures will persist over at least the medium term, by the challenges in winning back customers and market share from efficient conventional and non-conventional grocery competitors and by the uncertain outcome of the announced asset rationalization program.

The outlook is negative.

Moody's lowered Winn-Dixie's Class A-1 certificates due Sept. 1, 2017 and Class A-2 and A-3 certificates due Sept. 1, 2024 to B3 from B1

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