S&P changes Albertsons view

S&P said it revised the outlook on Albertsons Cos. LLC to negative from stable and affirmed the B+ corporate credit rating.

The agency said the revision reflects a view that the company’s credit metrics may not improve to the levels previously anticipated (including leverage near the high-5x range by fiscal-year-end 2017), as difficult industry conditions continue to challenge the company's operating results, impeding its ability to deleverage through earnings growth or cash generation.

“The rating reflects our belief that ACL's scale as the third-largest food retailer in the U.S. provides a meaningful competitive advantage, but its substantial debt burden limits its financial flexibility,” S&P said in a news release.

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