Moody's may cut Ingles

Moody's Investors Service said it placed Ingles Markets Inc.'s Ba1 corporate family and probability of default ratings and B1 (LGD 5, 73%) senior unsecured ratings on review for possible downgrade based on concerns that credit metrics could remain weak for an extended period.

The review is prompted by news that the company's will issue $99.74 million in tax exempt recovery zone facility bonds on or before Dec. 31 to finance the expansion of its current distribution center and for eligible costs of store construction in North Carolina, Moody's said.

Given the company's moderate scale, geographic concentration, competition from alternative food retailers and continued economic weakness, margins could remain under pressure resulting in little or no improvement in credit metrics for an extended period, the agency said.

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