S&P assigns Rite Aid notes B+, B-

Standard & Poor's said it assigned its B+ rating to Rite Aid Corp.'s $300 million senior secured notes due in 2017 and its B- rating to the company's $500 million senior unsecured notes due in 2015.

These ratings are placed on CreditWatch with negative implications, all other ratings on Rite Aid, including the B+ corporate credit rating, remain on CreditWatch with negative implications, where they were placed on Aug. 24, the agency said.

Proceeds from the offering will be used to redeem all of Rite Aid's $300 million outstanding 9½% notes due February 2011 and for general corporate purposes, the agency said, adding that they will also replenish the company's $1.75 billion revolving credit facility that was used to retire all of its $250 million outstanding 4.75% convertible notes due December 2006 and all of its $185 million outstanding 7.125% senior unsecured notes due January 2007.

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