Fitch gives Kroger notes BBB

Fitch Ratings said it assigned a rating of BBB to the Kroger Co.'s new $300 million senior unsecured notes offering due 2040.

The outlook is stable.

Proceeds from the offering will be used for general corporate purposes, the agency said, adding that the notes will be guaranteed by most of the company's subsidiaries and will rank equal in right of payment with the company's other senior unsecured debt.

The rating reflects Kroger's successful Customer 1st' operating strategy, which has allowed it to generate industry leading sales growth, its ability to generate cost efficiencies and strong cash flow, and its conservative financial management, Fitch noted.

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