Moody’s lowers Tops view to negative

Moody's Investors Service said it changed the outlook on Tops Holding II Corp. to negative from stable.

The agency also said it affirmed the company's B3 corporate family rating and B3-PD probability of default rating.

The agency also affirmed the B3 rating of Tops Holding LLC's senior secured notes due 2022 and the Caa2 rating of Tops Holding II’s senior unsecured notes due 2018.

The outlook revision reflects uncertainty regarding the company's ability to improve its credit metrics to levels consistent with its B3 rating given the challenging and competitive business environment, Moody’s explained.

The group’s credit metrics position the company weakly in the B3 rating category with a debt-to-EBITDA ratio deteriorating to 7x at the end of fiscal 2015 from 6.6x the prior year, the agency said.

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