Moody's might lower Safeway

Moody's Investors Service said it placed Safeway Inc.'s ratings, including its senior unsecured rating of Baa3 and its commercial paper rating of Prime-3, on review for possible downgrade.

The review for possible downgrade follows Safeway's announcement that it agreed to be acquired by AB Acquisition LLC in a transaction valued at about $9 billion or about $40 a share including proceeds from the sale of Safeway's property development subsidiary Property Development Centers, the sale of Safeway's 49% holding in Casa Ley, the fifth-largest food and general merchandise retailer in Mexico and the estimated value of the distribution of Safeway's remaining 72.2% shares of Blackhawk Network Holdings, Inc.

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