S&P rates Kroger notes BBB

Standard & Poor's said it assigned a BBB rating to Kroger Co.'s $1 billion senior unsecured notes, of which $600 million is due in 2023 and $400 million is due in 2043.

The BBB corporate credit and senior unsecured ratings are unchanged.

The outlook is stable.

The company will likely use these notes to term out commercial paper that it used to fund maturities earlier this year, S&P said.

The ratings reflect the company's satisfactory business risk profile, incorporating an expectation that Kroger will outperform most industry competitors because of its pricing and customer loyalty strategies, the agency said.

Kroger is considered well positioned to increase sales and profits in a difficult industry climate, S&P said.

Nonetheless, the agency said it expects increased competition from nonconventional food retailers, the agency said.

The company also will face continued price competition, which may lead to profit pressure, S&P added.

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