Fitch rates SuperValu loan B

Fitch Ratings said it assigned a rating of B with a recovery rating of RR1 to SuperValu Inc.'s $1.65 billion senior secured asset-based revolving credit facility and its $850 million senior secured term loan B.

Both facilities closed in August.

The agency also affirmed SuperValu's issuer default rating at CCC and upgraded its senior unsecured notes to CCC+ with a recovery rating of RR3 from CCC with a recovery rating of RR4.

New Albertson's, Inc.'s issuer default rating was affirmed at CCC, along with its senior unsecured notes at CCC with a recovery rating of RR4.

Fitch also affirmed American Stores Co., LLC's issuer default rating at CCC and upgraded its senior unsecured notes to B with a recovery rating of RR1 from B- with a recovery rating of RR3.

The new secured facilities provide needed relief, as headroom in the covenants under the prior credit facility and term loan were down to about 10%, Fitch said.

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