S&P: Roundy's view stable

Standard & Poor's said it revised the outlook on Roundy's Supermarkets Inc. to stable from negative and affirmed the B+ corporate credit rating.

The company has B+ ratings for $125 million revolving credit facility bank loan due 2010 and $800 million term bank loan due 2011.

S&P said the outlook change reflects the company's credit metrics, which have improved to levels that are adequate for the current rating and adequate liquidity.

Ratings reflect Roundy's aggressive financial policy, pressure in the supermarket industry, higher fuel prices and a weaker economy, the agency said.

While Roundy's business profile and adequate liquidity underpin the rating and partially offset a weaker financial profile, S&P said there is limited room for further deterioration in credit metrics.

At Sept 29, the company's debt-to-EBITDA ratio was 5.4 times.

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