...Potential Spinoff of Save-A-Lot: Fitch Ratings affirmed its `B' Issuer Default Rating (IDR) on SUPERVALU Inc. (SVU) post the company's announcement that it is exploring the potential spinoff of its Save-A-Lot business into a stand-alone, publicly traded company. The affirmation takes into account the company's improving operating trends, positive FCF and moderately high financial leverage in the low-4x range. Should Save-A-Lot not be spun off and continue its strong trajectory, SVU's operating and financial profile could support a high `B' rating. Negative Impact on Business Profile: A spinoff of Save-A-Lot would negatively affect SVU's business profile by removing SVU's primary growth vehicle, which generated $221 million of EBITDA in fiscal 2015 (27% of consolidated EBITDA) and has significant long-term growth upside. SVU's remaining businesses are the mature retail food (supermarket) and independent business (wholesale grocery) segments. Potential EBITDA Pressure: These remaining businesses...
