S&P affirms Fairway Group

Standard & Poor’s said it affirmed all existing ratings on Fairway Group Holdings Corp., including its B- corporate credit rating.

The outlook is stable.

“The affirmation reflects our view that Fairway will continue to struggle in growing its store base at a rate greater than about one store per year over the next two years, as new store locations become more difficult to solidify because of capacity and site selection limitations,” said S&P credit analyst Kristina Koltunicki in a news release.

“Despite the slower growth trajectory, we believe the company will continue growing its EBITDA base as profitability gains at its newer stores offset low-single-digit same-store sales declines at its existingstores. We revised the company’s business risk profile score to ‘vulnerable’ from ‘weak,’ as its volatility of profitability increased over the prior year.”

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