Moody’s reviews C&S

Moody's Investors Service said it placed C&S Group Enterprises LLC's ratings on review with direction uncertain. The ratings under review include the company's Ba3 corporate family rating and the B2 rating on the company's $400 million senior unsecured global notes due 2028. Previously, the outlook was stable.

“The review with direction uncertain reflects governance considerations particularly C&S' potential acquisition of certain of the Kroger/Albertsons assets as well as the lack of clarity regarding the final amount of assets acquired and their related revenue and earnings,” Moody’s said in a press release. The deals are expected to close in 2024.

The agency added, “The review will consider C&S plans for integrating the assets and its go-forward operating strategies of the combined entity. The review will also focus on C&S' financial strength and pro-forma capital structure following the close of the transaction. Lastly, the review will also monitor the receipt of all required regulatory approvals.”

C&S could acquire at least 413 grocery stores, 8 distribution centers, 2 offices and 5 private label brands across 17 states and the District of Columbia for about $1.9 billion. The terms of the agreement also provide for Kroger to require C&S to buy 237 more stores for a total of 650 stores.

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