Moody's: A&P unchanged

Moody's Investors Service said the reduction in the amount of exit financing related to the Great Atlantic and Pacific Tea Co.'s (A&P) emergence from bankruptcy will not affect its Caa1 corporate family and probability of default ratings or B3 rating of the exit term loan facility.

The exit term loan facility has been reduced to $270 million from $350 million and the exit asset-backed loan revolving credit facility has been reduced to $375 million from $400 million.

S&P said this decision is based on the minimal impact the change will have on credit metrics.

Reversing an extended period of decline in the company's profitability and sales growth remains a difficult challenge for management in light of a sluggish economy and a skittish consumer, the agency added.

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