Moody's: Stater Bros. view to negative

Moody's Investors Service said it changed the outlook for Stater Bros. Holdings Inc. to negative from stable and affirmed the company's B2 corporate family rating and B2-PD probability of default rating.

Additionally, the agency affirmed the B2 rating of the company's $255 million senior unsecured notes due 2018 and the B2 rating of the $285 million senior unsecured notes due 2015 and assigned the company an SGL-2 speculative grade liquidity rating.

"The change in outlook is prompted by the continuing decline in the company's profit margins due to pricing pressures resulting from increased competition and our expectation that these declines will continue in the near to medium term," Moody's senior analyst Mickey Chadha said in a news release. "Margin erosion has resulted in weakening of credit metrics."

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