S&P: Roundy's Supermarkets on watch

Standard & Poor's said it placed the ratings on Roundy's Supermarkets Inc., including the BB- corporate credit and senior secured bank loan ratings, on CreditWatch with negative implications following the company's announcement that it is undertaking a refinancing of substantially all of its existing debt.

As part of the transaction, the company intends to enter into a new secured bank facility and to issue new debt, the agency noted.

Proceeds will be used to pay a substantial dividend to its existing shareholders, to redeem all of its B rated 8.75% senior subordinated notes due 2012, which are also on watch and to repay borrowings under its current credit facility, S&P added.

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