Moody's Assigns B2 Rating to Sprouts Debt

NEW YORK — Moody's Investors Service here said Friday it has assigned a B2 rating to the proposed $625 million senior secured term loan and $60 million senior secured revolving credit facility for Sprouts Farmers Market Holdings.

The rating agency also affirmed its B2 corporate family rating, with a stable outlook.

Proceeds from the proposed credit facilities will be used to refinance existing debt and pay a shareholder dividend, Moody's said.

"Although Sprouts' debt-financed dividend increases leverage, we expect credit metrics to remain consistent with its B2 rating," the agency said. "Sprouts continues to demonstrate good same-store sales growth, and we expect its credit metrics to improve modestly in the near to medium term as it pursues an ambitious growth strategy."

Moody's B2 rating indicates a speculative grade of credit with high risk.