S&P rates A&P B-, loan B+

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

At the same time, the agency said it assigned a B+ issue-level rating and a 1 recovery rating to the company's $270 million senior secured term loan. The 1 recovery rating incorporates S&P's expectation of very high recovery of principal in the event of a default.

The outlook is negative.

"The rating reflects our view that the company will maintain 'adequate' liquidity in the near term and our belief that A&P has the potential to improve operating performance such that it will be able to sustain its post-emergence capital structure," said S&P credit analyst Charles Pinson-Rose in a news release.

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