Fitch: Supervalu outlook stable

Fitch Ratings said it affirmed Supervalu Inc.'s issuer default rating at BB-, $2 billion revolving bank credit facility at BB, $1.25 billion term loan A at BB, $750 million term loan B at BB and senior unsecured notes at BB-.

The agency assigned an issuer default rating of BB- to New Albertson's, Inc. and American Stores, Inc. and affirmed the senior unsecured notes at BB-.

The outlook was revised to stable from positive.

Fitch said the revision reflects the expectation that Supervalu's operating performance and credit metrics will continue to be pressured given the current economic and competitive environment.

For the fiscal year ended Feb. 28, total adjusted debt-to-EBITDAR ratio was 3.9 times. The company is expected to continue to direct a significant portion of cash flow to debt reduction over time, the agency said.

© 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.