Moody's affirms Roundy's

Moody's Investors Service said it affirmed the ratings of Roundy's Supermarkets, Inc. and assigned B1 ratings to the proposed amended and extended portions of its bank credit facilities.

The outlook remains stable.

According to the agency, the B2 corporate family rating reflects Roundy's high leverage, little ability to maintain operating profit and cash flow in the event of any decline in sales, small size relative to the overall supermarket universe, and its geographic concentration.

The rating also recognizes Roundy's position as the leading supermarket operator in Wisconsin, the company's private label and commissary growth, and the long-term stability of management. Roundy's operating margins are thin, as is typical for its sector, but compare well against supermarket peers, Moody's said.

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