S&P affirms SuperValu, rates loan BB+

Standard & Poor's said it affirmed its BB- corporate credit rating on SuperValu Inc.

The outlook remains negative.

"We assigned a BB+ issue rating on the company's amended and extended senior secured bank facility with a recovery rating of 1, indicating its expectations for a very high recovery (90%-100%) in the event of a payment default," said S&P credit analyst Ana Lai.

The unsecured bonds remain at B+ or one notch below the corporate credit rating, with a recovery rating of 5, the agency said.

While S&P said it recognizes the company now has improved cushion under its bank facility covenants following the amendment, the company still has sizeable bond refinancing needs over the next few years.

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