Moody's: Atlantic & Pacific to stable

Moody's Investors Service said it changed the outlook of Great Atlantic & Pacific Tea Co., Inc. (A&P) to stable from negative and affirmed the company's Caa2 corporate family rating and Caa2-PD probability of default rating.

The B3 rating on Atlantic & Pacific's $235 million first-lien senior secured term loan facility was also affirmed.

"Although we still think that A&P's capital structure is unsustainable, it's operating performance and liquidity have demonstrated some improvement as management initiatives have had a positive impact on profitability, cash flow and traffic," Moody's senior analyst Mickey Chadha said in a news release.

"However, same store sales growth continues to underperform and reversing the company's brand erosion due to an extended period of underperformance will continue to be challenging in light of stiff competition and a sluggish economy."

© 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.