Skip navigation

Moody's Boosts Roundy's Debt Rating to 'Stable'

NEW YORK — Moody's Investors Service here said Monday the reduction by Roundy's of existing debt following its initial public offering resulted in an upgrade of the outlook for the chain to stable from negative.

Moody's also affirmed the chain's corporate family rating at B2 and lowered its probability of default rating to B3. The corporate family rating and the stable outlook reflect the expectation that liquidity will remain good, credit metrics will not deteriorate and financial policies will remain benign, the agency said, combined with the expectation of a smooth execution of Roundy's expansion plans in Chicago, where it is growing the Mariano's Fresh Market banner.

Moody's also affirmed the B1 rating of the chain's new $125 mllion first-lien revolving credit facility and its new $675 million first-lien term loan.

According to Moody's, the probability of default rating was lowered as a result of the change in the company's capital structure following last month's IPO.

"The refinancing resolves the pending debt maturities and improves liquidity and financial flexibility," the agency said.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish