Moody's: A&P outlook to developing

Moody's Investors Service said it affirmed the ratings of The Great Atlantic & Pacific Tea Co., Inc., but changed the outlook to developing from negative.

Moody's affirmed A&P's B3 senior implied rating, Caa1 issuer rating, B2 senior secured and guaranteed bank agreement, Caa1 senior unsecured notes, prospective Caa1, Caa2 and Caa3 multi-seniority shelf and SGL-3 speculative grade liquidity rating.

The outlook change is based on Moody's expectation that the recently announced strategic restructuring will materially impact the company's weak credit metrics; whether the post-restructuring metrics are stronger or weaker will depend upon the completion of a number of initiatives and A&P's future financial policy decisions regarding the application of asset sale proceeds.

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