S&P drops Rite Aid to D

S&P said it cut Rite Aid Corp.’s ratings, including its all tranches of debt in the company's capital structure to D, including the asset-based lending facility from CCC+, the first-in last-out term loan from CCC and the second-lien secured and unsecured debt from C.

The downgrade follows Rite Aid's announcement that it started a voluntary bankruptcy proceeding under Chapter 11 of the U.S. bankruptcy code, after it agreed, in principle, with certain senior secured lenders, the agency said.

In connection with the voluntary restructuring, the company agreed with senior lenders to a $3.45 billion commitment in new financing.

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