Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers R > Headlines for Rite Aid Corp. > News item |
Fitch: Rite Aid outlook stable
Fitch Ratings said it affirmed Rite Aid Corp.'s issuer default rating at B- and revised the outlook to stable from negative.
The agency assigned BB-/RR1 ratings to Rite Aid's proposed $1 billion credit facility, the new $525 million term loan due June 2015 and the 9¾% $410 million senior first-lien secured notes due June 2016.
The agency also affirmed the secured revolving credit facility and term loans at BB-/RR1, second-lien senior secured notes at BB-/RR1, guaranteed senior unsecured notes at CCC/RR5 and non-guaranteed senior unsecured notes at CC/RR6.
The outlook revision reflects Rite Aid's progress in refinancing 2010 debt maturities, thus alleviating liquidity concerns, according to the agency.
Ratings consider Rite Aid's significant high leverage and limited capital for investment, operating statistics that significantly trail its two major competitors and the ongoing risk of improving operations at the acquired Brooks Eckerd stores, the agency said.
Ratings also reflect Rite Aid's strong market share position as the third largest U.S. drug retailer and management's concerted efforts to improve the productivity of its store base and manage liquidity through working capital reductions and other cost cutting initiatives, the agency noted.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.