S&P rates Supervalu loans BB+

Standard & Poor's said it assigned Supervalu Inc.'s $4 billion senior secured credit facilities a BB+ rating with 1 recovery rating and affirmed the BB- corporate credit rating.

The outlook is positive.

The rating reflects the company's participation in the highly competitive supermarket industry, its limited free operating cash flow given its sizable capital expenditure needs, its leveraged balance sheet and its older acquired store base compared with large industry peers, the agency said.

The company's large scale, good market positions, broad geographic reach and format diversity partially mitigate those weaknesses, S&P noted.

The issuer's total debt-to-EBITDA was about 3.9 times in fiscal 2008.

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