Fitch upgrades Rite Aid

Fitch Ratings said it upgraded Rite Aid Corp.'s issuer default rating to B from B-.

The agency also upgraded the rating on Rite Aid's secured revolving credit facility and term loans to BB with recovery rating of RR1 from BB- with a recovery rating of RR1.

Also upgraded includes the rating on the company's first- and second-lien senior secured notes to BB with a recovery rating of RR1 from BB- with recovery rating of RR1, guaranteed senior unsecured notes to B with recovery rating of RR4 from CCC+ with recovery rating of RR5 and non-guaranteed senior unsecured notes to CCC+ with a recovery rating of RR6 from CCC with recovery rating of RR6.

The outlook is stable.

The upgrades reflect the material improvement in the company's operating performance, credit metrics and liquidity profile over the past 24 months, Fitch said.

This improvement has been supported by the strong generic wave that boosted gross margins, as well as management's concerted efforts to stabilize its top-line through its loyalty card program and remodeling activity, the agency said.

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