NEW YORK — Moody's Investment Service here said Friday the agreement by Smart & Final Holdings Corp. to sell its 43 Henry's Farmers Markets to Sprouts Farmers Markets will have no impact on the company's credit ratings or stable outlook at this time.
"The sale and use of the proceeds will require approval from the majority lenders, and the use of proceeds is unknown at this time," Mickey Chadha, a senior analyst with Moody's, explained. "We will evaluate the impact upon Smart & Final's ratings when the terms of any bank amendment and the use of proceeds becomes known."
Smart & Final, based in Commerce, Calif., has a B3 corporate family rating; a B3 rating on the first lien term loan; and a Caa2 rating on the second lien term loan. The company is owned by an affiliate of Apollo Management, a New York-based investment firm.