S&P lowers Supervalu

Standard & Poor's said it lowered Supervalu Inc.'s corporate credit rating to B+ from BB-.

The outlook remains negative.

"Our rating action reflects Supervalu's lack of progress in improving sales, declining profitability and weakening credit protection measures," S&P analyst Ana Lai said in a statement.

The company's sales and margins will remain under pressure due to the intensely competitive nature of the food retailing industry as well as its lack of progress in turning around its declining sales, the agency said.

The rating also incorporates expectations that credit measures will continue to deteriorate in fiscal 2012 due to declining cash flow despite ongoing debt reduction, the agency added.

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