S&P lowers Rite Aid

Standard & Poor's said it lowered the corporate credit and secured debt ratings on Rite Aid Corp. to B from B+.

At the same time, the agency said it lowered the senior unsecured debt ratings to CCC+ from B-.

Concurrently, S&P said it assigned its CCC+ rating to Rite Aid's proposed $1.220 billion senior unsecured notes, which mature in 2017.

The agency noted that the downgrade reflects the operational risk of acquiring 1,800 stores and six distribution centers in the United States from The Jean Coutu Group (PJC) (B+/Watch positive) and Rite Aid's aggressive financial policy.

The ratings reflect the challenges Rite Aid faces in integrating the 1,800 acquired stores while continuing to improve the operations at its drugstores amid intense competition, the agency said.

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