Moody's lowers Duane Reade

Moody's Investors Service downgraded all ratings of Duane Reade Inc, including the $160 million second-lien senior secured notes due 2010 to B3 from B2, the $195 million of 9.75% senior subordinated notes due 2011 to Caa2 from Caa1, the senior implied rating to B3 from B2 and the long-term issuer rating to Caa3.

The outlook is negative.

The rating downgrade was prompted by weak operating performance, the agency said.

Moody's does not rate the $250 million revolving credit facility that is collateralized by a first lien on accounts receivable, inventory and pharmacy prescription files.

© 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.