Moody’s confirms 7-Eleven

Moody’s Investors Service said it confirmed the Baa1 long-term rating and the Prime-1 commercial paper rating of 7-Eleven, Inc.

The outlook is stable.

The agency said the actions conclude the review for downgrade that was initiated on Jan. 31.

"Today's confirmation reflects Moody's view that the Sunoco acquisition will deleverage sufficiently within an 18-24 month time period for 7-Eleven's credit profile to return largely to current levels, which solidly positions the company at the Baa1 rating level," Moody's vice president Charlie O'Shea said in a news release.

"The debt load being incurred of around $3 billion will initially stress metrics, however we believe synergies and potentially improved margins will occur almost immediately.”

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