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S&P: Pathmark unaffected
Standard & Poor's said Pathmark Stores Inc.'s (B/Negative/--) announcement that Yucaipa Companies LLC will make a $150 million equity investment in Pathmark will not currently affect its ratings on the company.
Pathmark said that it will use proceeds to upgrade its existing store base and to open additional stores. Yucaipa has also executed a five-year management agreement with the company to provide consulting services on corporate strategy, marketing, operations, finance and retail development.
S&P notes that its rating outlook on Pathmark could possibly be revised to stable after the transaction closes (likely sometime this summer), the company is able to provide more guidance on the use of the proceeds and Pathmark discusses any potential strategic changes.
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