S&P cuts Save-A-Lot, rates Moran B-

S&P said it lowered the corporate credit rating on SAL Acquisition Corp. (Save-A-Lot) to B- from B.

The outlook is stable.

The agency also assigned a B- corporate credit rating and stable outlook to Moran Foods, LLC.

At the same time, S&P lowered the issue-level rating on the company's senior secured term loan to B- from B. The 3 recovery rating is unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.

“The downgrade reflects Save-A-Lot's weak operating performance and our expectation that results will fall below our previous forecast as the company's new management team works to implement its transformation plan amid a very challenging grocery operating environment,” the agency said in a news release.

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