S&P lowers Roundy

Standard & Poor's said it lowered the corporate credit rating on Roundy's Supermarkets Inc. to B- from B and removed it from CreditWatch with negative implications, where it was placed in November.

The outlook is stable.

S&P also said it lowered the rating on the company's senior secured term loan to B from B+. The senior secured recovery rating remains at 2, indicating 70% to 90% expected default recovery.

The downgrade was based mainly on a forecasted expectation of weak performance that is likely to continue over the next year, coupled with increased debt to fund store acquisitions and the debt adjustment as a result of assumed operating leases, said Charles Pinson-Rose, an S&P analyst.

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