S&P ups A&P short-term rating

Standard & Poor's said it raised its short-term rating on The Great Atlantic & Pacific Tea Co. Inc. (A&P) to B-2 from B-3 and affirmed all other ratings, including the B- corporate credit, B senior secured bank loan and B- senior unsecured debt ratings.

S&P said the upgrade reflects enhanced liquidity generated from the sale of The Great Atlantic & Pacific Co. of Canada Ltd. and the application of a significant portion of proceeds to debt reduction.

According to S&P, the ratings on A&P continue to be based on weak profitability, difficult industry conditions in its core U.S. markets and high lease-adjusted debt leverage.

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