Moody’s raises Kroger debt to Baa1

Moody's Investors Service said it upgraded Kroger Co.'s senior unsecured rating to Baa1 from Baa2.

The outlook remains stable.

"The upgrade recognizes Kroger's strong execution ability, which is leading to continued positive operating trends, its large scale, its dominant market position vis-à-vis other traditional food retailers, its store format diversification, merchandising initiatives and balanced conservative financial policies," Moody's vice president Mickey Chadha said in a news release.

"We expect Kroger to continue to report positive identical store sales growth, maintain margins and a balanced financial policy, the corner stone of which is its 2.0-2.2 times reported net debt to EBITDA target."

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