S&P rates Albertson's loan BB-

Standard & Poor's said it assigned a BB- rating and a 1 recovery rating to Albertson's LLC's proposed amended $750 million term loan due 2019.

The recovery rating indicates 90% to 100% expected default recovery.

The B corporate credit rating is unchanged, along with the BB- rating and 1 recovery rating on the company's remaining $400 million term loan due 2016.

The outlook is negative.

The amendment of the loan is expected to decrease the company's borrowing costs, but the total debt amounts are unchanged, S&P said.

The proposed amendment also will extend the maturity of $750 million of the principal to 2019 from 2016, the agency added.

The ratings reflect the company's highly leveraged financial risk profile, S&P said.

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