Moody's: Kroger unchanged

Moody's Investors Service said there will be no impact on the ratings of the Kroger Co.'s revolving credit facilities and senior unsecured notes due to an amendment that removes support from subsidiaries that currently guarantee its unsecured debt.

The company's Baa2 long term senior unsecured ratings and prime-2 short term rating are unchanged, the agency said.

Moody's said it assumes that Kroger's prospective $2 billion revolving credit facility, which will not be guaranteed by any subsidiaries, will be followed by a request to the note trustees to release the guarantees from all of its senior unsecured debt.

So long as all of Kroger's debt is structured with no upstream guarantees, then all of its debt will be pari passu and none will have a structural priority over any other, the agency said.

But, a failure to obtain guarantee releases from its other senior unsecured debtholders in a timely fashion could result in a change to the ratings considerations, Moody's said.

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