S&P rates A&P loan B+

Standard & Poor's said it assigned a preliminary B- corporate credit rating to the Great Atlantic & Pacific Tea Co. Inc. (A&P).

The agency also said it assigned a preliminary B+ rating and preliminary 1 recovery rating to the company's proposed $270 million senior secured term loan.

The preliminary 1 recovery rating incorporates 90% to 100% expected recovery in a default.

The outlook is negative.

The ratings are subject to the company's timely emergence from bankruptcy and the consummation of its plan of reorganization remaining in line with expectations, S&P said.

The ratings reflect that the company will maintain adequate liquidity in the near term and a belief that it has the potential to improve operating performance, the agency said.

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