Fitch gives Rite Aid loans BB-/RR1

Fitch Ratings said it assigned BB-/RR1 ratings to Rite Aid Corp.'s proposed new $1,725,000,000 secured revolving credit facility due 2018, $900 million senior secured term loan B due 2020 and $470 senior secured second-lien term loan due 2020.

The outlook is stable.

Fitch said the ratings continue to reflect the following:

• Rite Aid's high leverage and operating statistics that significantly trail its two major competitors;

• Strong market share position as the third largest U.S. drug retailer; and

• Management's concerted efforts to improve the productivity of its store base and manage liquidity through a series of refinancings that have pushed out debt maturities to 2017, working capital reductions and other cost cutting initiatives.

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