S&P rates Winn-Dixie loan B+

Standard & Poor's said it assigned a bank loan rating of B+ and a recovery rating of 1 to Winn-Dixie Stores Inc.'s $600 million secured credit facilities maturing June 2007.

At the same time, S&P affirmed its B corporate credit rating on Winn-Dixie. The senior unsecured debt rating was lowered to B- from B, based on the expanded credit facility, which now represents a relatively larger amount of secured debt in the capital structure, the agency said.

The outlook is negative.

S&P said the ratings on Winn-Dixie reflect the company's well-below-average operating performance, increasing competitive pressures, regional concentration, and weak cash flow protection. Following a restructuring to be completed by May 2005, Winn-Dixie will operate 922 stores primarily in the Southeast - a fast-growing but very competitive market.

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