Moody's reviews Great Atlantic ratings |
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Mon, 05 Mar 2007 22:02
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NEW YORK (AP) - Credit ratings agency Moody's Investors Service on Monday put the long-term ratings of Great Atlantic & Pacific Tea Co. on review for a possible downgrade after the owner of A&P supermarkets made a $679 million bid to acquire Pathmark Stores Inc.'The contemplated merger of A&P and Pathmark could result in a more highly leveraged entity with modest profitability that operates in highly competitive trade areas of the Northeast region of the country,' wrote Moody's in a statement.Moody's placed under review the company's corporate family rating and probability of default rating, both 'B3,' the first below investment grade or junk-bond rating.Moody's also placed the company's senior unsecured notes rating, multi-seniority shelf ratings, finance ratings and trust preferred securities shelf rating under review.Moody's affirmed the speculative grade liquidity rating of SGL-3. SGL-1 is the highest speculative-grade liquidity rating, which rate issuers' relative ability to generate cash from internal resources, and the availability of external sources of financing. SGL-3 is an 'adequate' rating.Company shares rose $1.62 or 5.3 percent to $32.48 during late day trading on the New York Stock Exchange. The stock has traded between $20.67 and $37.02 during the past 52 weeks.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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S&P: A&P parent rating on watch negative 