Fitch upgrades Alhold Delhaize

Fitch Ratings said it upgraded Ahold Delhaize NV's issuer default rating, along with the bonds issued by Ahold Finance USA LLC, to BBB+ from BBB.

The outlook is stable.

Fitch also said it assigned ratings to the bonds issued by Ahold Delhaize, Delhaize America LLC and Delhaize Le Lion/De Leeuw Comm. VA.

All of the rated bonds issued outside the parent company are cross-guaranteed by Ahold Delhaize, Delhaize America LLC and Delhaize Le Lion/De Leeuw Comm. VA, ranking pari passu with other debt issued by the parent, Fitch explained.

Ahold Delhaize also guarantees the bond issued by Ahold Finance USA, LLC.

The upgrades reflect the company's strengthened credit profile and diminished execution risks following the successful integration of Ahold and Delhaize after their merger in 2016, Fitch said.

Over the past two years, Ahold Delhaize has maintained moderate leverage, while improving operating margins through synergies, accelerating like-for-like sales growth and achieving consistent market share gains across most markets, including the difficult U.S. market, the agency said.

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