S&P lifts Ahold shares to BB+

Standard & Poor's said it raised the ratings on the cumulative preferred financing shares of Koninklijke Ahold NV to BB+ from BB.

No other ratings on the group or its debt were affected, S&P said.

The paid-in capital for issued cumulative preferred financing shares and the related additional paid-in capital are equal to €497 million, the agency said.

Based on a review of the available documentation for these securities, S&P said it now assesses that the securities have optional deferability of interest payments.

These cumulative preferred financing shares are now rated two notches less than the BBB issuer credit rating on the group, the agency said.

The BB+ rating reflects a downward adjustment from the issuer credit rating of one notch for subordination because the corporate credit rating on Ahold is investment grade – and another notch for the optional deferability of interest payments, S&P said.

There is a relatively low likelihood that the issuer will defer interest, the agency said.

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