S&P rates Rite Aid loan B+

Standard & Poor's said it assigned B+ issue and 1 recovery ratings to Rite Aid's proposed $400 million tranche 4 term loan due 2015. The B- corporate credit rating was affirmed.

The outlook remains negative.

Proceeds will be used to repay the$145 million tranche-one term loan maturing September 2010 and reduce borrowing outstanding under the company's revolver credit facility.

"The ratings reflect the challenges Harrisburg, Pa.-based Rite Aid Corp. faces in improving both the operating performance of the 1,800 acquired Eckerd stores and overall operations amid intense industry competition," S&P analyst Ana Lai said in a statement.

They also reflect the company's significant debt burden and thin cash flow protection, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.