Fitch lifts SuperValu notes to B/RR4

Fitch Ratings said it affirmed SuperValu Inc.'s issuer default rating at B and revised the outlook to negative from stable.

The agency also affirmed the BB/RR1 rating on the company’s ABL revolver and term loan and upgraded the senior unsecured notes to B/RR4 from B-/RR5 based on an updated recovery analysis.

Fitch said the ratings weigh SuperValu’s position as one of the largest wholesale distributors in the U.S. against its mediocre retail grocery market positions.

The ratings are constrained by heightened competition, consolidation and restructurings in the supermarket industry as well as SuperValu’s declining retail operating earnings and the expected loss of EBITDA from the wind-down of its transition service agreement with Albertsons, the agency added.

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