Fitch: Safeway on watch

Fitch Ratings said it has placed Safeway Inc.'s ratings on rating watch negative.

Fitch currently rates Safeway's long-term issuer default rating BBB- and its short-term issuer default rating F3.

The rating watch negative follows Safeway's announcement that it is in discussions concerning a possible sale of the company and reflects the expectation that a sale of the company could cause financial leverage to increase further, into the mid-4x range or higher depending on the structure of the transaction, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.