S&P: A&P, Pathmark on positive watch

Standard & Poor's said it revised the CreditWatch implications for both Great Atlantic & Pacific Tea Co. Inc. (A&P) and Pathmark Stores Inc. to positive from developing.

The long-term corporate credit rating on both companies is B-, the agency said, noting that although a definitive capital structure has yet to be determined, A&P announced an agreement to sell 19 Sav-A-Center stores to Rouse's Supermarket and two other stores to other buyers.

Expected proceeds from the sale of its noncore stores in both the Midwest and in the Greater New Orleans area are estimated to be in the range of $160 million to $180 million, the agency said, adding that it could raise the ratings from the current B- levels if A&P closes on its acquisition of Pathmark, while additionally, ratings downside is limited.

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