Moody’s rates BI-LO facilities B1, B3

Moody's Investors Service said it assigned a B1 rating to BI-LO, LLC's proposed new $550 million ABL revolving credit facility and a B3 rating to its proposed new $50 million FILO term loan.

Additionally, the agency affirmed the company's B3 corporate family rating and B3-PD probability of default rating.

Moody's also affirmed the Caa1 rating of the company's senior secured term loan, which was downsized to $475 million from $525 million.

The outlook remains stable.

"Although the company will emerge from bankruptcy with a stronger balance sheet, the next couple of years will be challenging as food retailing remains highly competitive and promotional particularly in BI-LO's geography, making it difficult to grow topline and profitability while simultaneously investing in the remaining store base and executing on a longer term strategic plan," Moody's vice president Mickey Chadha said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.