S&P cuts A&P

Standard & Poor's said it lowered the short-term rating on The Great Atlantic & Pacific Tea Co. (A&P) to B-3 from B-2 and revised the outlook to stable from developing.

The long-term corporate credit rating is unchanged at B-, the agency said, noting that the revisions reflect A&P's announcement that it will pay a special dividend of about $300 million to shareholders in April 2006.

S&P said the ratings on A&P reflect the company's weak profitability, difficult industry conditions in its U.S. markets and high lease-adjusted debt leverage.

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