Moody's shifts Rite Aid view to positive

Moody's Investors Service said it changed the outlook for Rite Aid Corp. to positive from stable.

"Rite Aid's liquidity has improved and near-term maturities have been addressed but operational and competitive challenges remain," stated Mickey Chadha, a Moody's vice president, in a press release.

"The change in outlook to positive reflects our expectations for further improvement in credit metrics and free cash flow over the next 12 months. New management initiatives are showing traction but will take time to fully demonstrate upside," Chadha added.

All other ratings, including the company's Caa1 corporate family rating and its Caa1-PD probability of default rating are affirmed. Moody's also raised the company's speculative grade liquidity rating to SGL-2 from SGL-3.

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