| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Rite Aid Corp. > News item |
S&P might lift Rite Aid debt
S&P said it placed its CCC+ issue-level rating on Rite Aid Corp.'s unsecured debt on CreditWatch with positive implications following the announcement that Rite Aid and Albertsons Cos. LLC will merge.
If the proposed transaction is completed as announced, Rite Aid's existing legacy unsecured notes due in 2027 and 2028 will be uptiered into the Albertsons capital structure, the agency explained.
“As a result, we think recovery prospects in a default scenario would be modestly higher for the unsecured lenders,” S&P said in a news release.
The agency said it expects to revise the recovery rating on the unsecured notes to 5 from 6, indicating expectations for modest recovery (in the 10%-30% range; rounded estimated 20%), and raise the issue- level rating to B- from CCC+.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.