Fitch affirms Kroger

Fitch Ratings said it affirmed the Kroger Co.'s issuer default rating at BBB, long-term issuer default rating at BBB, senior unsecured notes at BBB, bank credit facility at BBB, short-term issuer default rating at F2 and commercial paper rating at F2.

The outlook is stable.

The affirmations follow news that the company completed a new $2 billion revolving credit facility expiring in May 2014, Fitch said.

The new facility does not contain guarantees by the Kroger Co.'s subsidiaries that were present in the prior facility. The guarantees also are being removed from the senior unsecured notes as allowed by the indentures under which these notes were issued, the agency said. As such, all debt will continue to rank pari passu.

The ratings continue to reflect Kroger's successful 'Customer 1st' operating strategy, which has allowed it to generate industry leading sales trends, Fitch said.

The ratings also consider the economic environment and intense competition in the sector, the agency said.

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