Moody’s gives Albertsons SGL-1

Moody's Investors Service said it changed the outlook for Albertsons Cos. LLC's to negative from stable.

All other ratings, including the B1 corporate family rating, were affirmed.

In addition, the agency assigned the company an SGL-1 speculative grade liquidity rating.

"Albertsons credit metrics remain weak and the highly competitive and promotional pricing environment in the food retailing industry makes substantial improvement in topline and metrics difficult and uncertain, hence the negative outlook,” Moody's vice president Mickey Chadha said in a news release.

"On the positive side the company has very good liquidity with a large number of owned stores and good free cash flow which gives it the ability to reduce debt to levels more consistent with its current B1 rating category.”

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