S&P drops Marsh Supermarkets

Standard & Poor's said it lowered the corporate credit rating on Marsh Supermarkets Inc. to B- from B. The outlook is negative.

The agency said the rating action reflects the company's limited availability under its revolving credit facility, its need to refinance the facility before it matures in February 2006 and its weaker credit metrics.

The ratings on Marsh reflect the company's very heavy debt burden, below-average operating margins and negative free operating cash flow, as well as the highly competitive nature of the supermarket industry, the agency added.

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