Albertsons Cos. Inc. 'BB' Ratings Placed On CreditWatch Positive On Kroger Co. Acquisition

Albertsons Cos. Inc. (ACI) announced it will be acquired by Kroger Co. in a deal that values the company at an implied equity purchase price of about $19.9 billion (implied total enterprise value of approximately $24.6 billion, including the assumption of approximately $4.7 billion of ACI net debt). The deal will be funded initially with cash, with a $17.4 billion bridge financing that we anticipate will eventually be taken out with cash, term loans, and unsecured notes, the specifics of which we expect to be determined at a later date. We placed all our ratings on ACI, including our 'BB' issuer credit rating, on CreditWatch with positive implications. We expect to resolve the CreditWatch placement, which would likely result in

...+ Albertsons Cos. Inc. (ACI) announced it will be acquired by Kroger Co. in a deal that values the company at an implied equity purchase price of about $19.9 billion (implied total enterprise value of approximately $24.6 billion, including the assumption of approximately $4.7 billion of ACI net debt). + The deal will be funded initially with cash, with a $17.4 billion bridge financing that we anticipate will eventually be taken out with cash, term loans, and unsecured notes, the specifics of which we expect to be determined at a later date. + We placed all our ratings on ACI, including our '##' issuer credit rating, on CreditWatch with positive implications. + We expect to resolve the CreditWatch placement, which would likely result in a multiple notch upgrade of ACI and its debt to the same level as Kroger, once the proposed acquisition closes and we can assess the pro forma company's capital structure, operational plans, and management as a combined entity. DALLAS (S&P Global Ratings)...

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