NEW YORK — Moody's Investors Service here said Wednesday it has assigned a B1 rating to the proposed $700 million senior unsecured notes issued by Ingles Markets, Asheville, N.C.


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Ingles plans to use the proceeds to tender for its existing $575 million senior unsecured notes due in 2017, pay down existing revolver loans, supplement cash balances and pay the call premium on the existing notes, Moody's said.

Moody's also affirmed Ingles' Ba3 corporate family rating and its Ba3-PD probability of default rating, with a stable outlook.

Read more: Easter Shift Boosts Ingles in Q2

According to Moody's, "Ingles has a good regional market position and has been able to compete successfully with alternative food retailers and traditional grocers in its regional southeastern markets, as evidenced by its consistent positive same-store sales growth and fairly stable gross margins."

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