CHICAGO — Fitch Ratings here said Thursday it has assigned a rating of BBB-minus to Safeway's $250 million floating rate notes due in 2013, with a stable rating outlook.
Proceeds from the notes will be used to repay commercial paper borrowings, which totaled $701 million on June 5.
According to Fitch, the rating reflects Safeway's broad geographic presence and strong positions in its key markets, cost reduction efforts and solid cash-flow generation; it also reflects Safeway's soft operating trends and higher borrowings used in part for share repurchases, Fitch noted.