S&P cuts Roundy’s loan to B-

Standard & Poor's said it lowered its rating on Roundy's Supermarkets Inc.'s term loan due 2021 to B- from B and revised the recovery rating to 3 from 2.

The 3 recovery rating indicates an expectation of a meaningful recovery (at the high end of the 50% to 70% range).

S&P said the downgrade reflects its current recovery valuation in a hypothetical bankruptcy and emergence scenario, as well as recent weaker operating performance. The agency valued the company on a going-concern basis using a 5 times multiple applied to S&P’s projected emergence-level EBITDA of around $110 million by its estimates.

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