Moody's may drop Tops Holding

Moody's Investors Service said it placed the B3 corporate family rating and other long-term debt ratings of Tops Holding Corp. and its subsidiaries on review for possible downgrade.

The review is triggered by Tops' news that it has made a return of capital to its shareholders, Moody's said, adding that it had previously noted that continued demonstration of an aggressive financial policy could result in a downgrade.

The review will focus on the company's financial policy and financial objectives, revision of expected credit metrics following the return of capital, consideration of the performance of its core stores and newly acquired stores to date and the operational and financial implications of the disposition of seven additional stores as required by the Federal Trade Commission's decision this month, the agency noted.

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