S&P slices Rite Aid

S&P said it lowered its ratings on Rite Aid Corp. to CCC- from CCC+ and all its debt facilities.

“The downgrade reflects our view that a default, distressed exchange, or redemption appears increasingly likely within six months, barring unanticipated significantly favorable changes in the issuer's circumstances. We view the company's capital structure as unsustainable due to its weak operating results and a potentially prolonged path to a sustainable recovery. Moreover, we think potentially significant settlement claims stemming from opioid lawsuits will likely heighten these risks,” S&P said in a press release.

The agency said it forecasts Rite Aid’s free operating cash flow to be negative for the next two years.

The outlook is negative.

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