CHICAGO — Fitch Ratings here said Monday it has affirmed its ratings on Kroger Co., including its issuer default rating, at BBB, with a stable outlook.
According to Fitch, the ratings reflect the company's industry-leading sales growth and market-share gains, strong cash flow and relatively steady credit metrics, in addition to the company's recent more aggressive share repurchase activity and the intense price competition in the sector that will continue to pressure gross margins.
"Kroger also generates industry-leading non-fuel [identical]-store sales as a result of strong pricing perceptions by customers, effective marketing through use of loyalty-card data and improvements to the shopping experience," Fitch said.
