S&P raises A&P, rates loan B-, convertibles B-

Standard & Poor's said it raised the corporate credit rating on the Great Atlantic & Pacific Tea Co. Inc. (A&P) to B from B- and removed all of the ratings from CreditWatch, where they were placed with positive implications on Sept. 17.

At the same time, the agency said it assigned the following ratings: B- rating to A&P's $355 million secured bridge facility with a recovery rating of 5, indicating a modest recovery of principal in the event of a payment default; B- rating to A&P's proposed $150 million of senior unsecured convertible notes due 2011l and B- rating to A&P's proposed $230 million of senior unsecured convertible notes due 2012.

In addition, S&P said it withdrew all its ratings on Pathmark Stores Inc., given the successful closure of the acquisition on Dec. 3 while affirming the current senior unsecured B- ratings on A&P's senior unsecured 9.375% notes due 2039 and 9.125% notes due 2011.

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