S&P puts A&P on negative watch

Standard & Poor's said it placed its B- corporate credit and all other ratings for Great Atlantic & Pacific Tea Co. (A&P) on CreditWatch with negative implications, along with the corporate credit and all other ratings on Pathmark Stores Inc.

This action follows A&P's announcement Feb. 27 that it was engaged in negotiations to acquire Pathmark Stores at a possible purchase price of $12.50 per share, or about $653 million, to be paid in cash and A&P stock. As of Dec. 2, A&P had $38 million of net cash on its balance sheet after adjusting for $55 million of bank overdrafts.

S&P said will monitor this development closely. If an agreement is signed, the agency said it will resolve the watch after obtaining a better understanding of the company's combined future strategy, potential synergies and business profile, in addition to its financing plan and pro forma capital structure.

© 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.