Albertsons Cos. Inc. Upgraded To 'BB' On More Conservative Financial Policy And Debt Reduction; Outlook Stable

Albertsons Cos. Inc. (ACI) continues to report strong operating momentum even as the COVID-19 pandemic tapers in the U.S., with excess cash flow in part going toward debt repayment. We are raising our issuer credit rating on ACI to 'BB' from 'BB-'. We are also raisings our issue-level ratings on the company's unsecured notes to 'BB' from 'BB-', in line with the issuer credit rating. The '3' recovery rating on those notes is unchanged. The recovery percentage is capped at 50%-70% (rounded estimate: 65%) in the event of a payment default or bankruptcy. For Safeway Inc. and New Albertsons L.P. (NALP) notes, we are raising the issue-level ratings to 'B+' from 'B', in line with the issuer credit rating. The

...June 9, 2021 - Albertsons Cos. Inc. (ACI) continues to report strong operating momentum even as the COVID-19 pandemic tapers in the U.S., with excess cash flow in part going toward debt repayment. - We are raising our issuer credit rating on ACI to '##' from '##-'. - We are also raisings our issue-level ratings on the company's unsecured notes to '##' from '##-', in line with the issuer credit rating. - The '3' recovery rating on those notes is unchanged. The recovery percentage is capped at 50%-70% (rounded estimate: 65%) in the event of a payment default or bankruptcy. - For Safeway Inc. and New Albertsons L.P. (NALP) notes, we are raising the issue-level ratings to 'B+' from 'B', in line with the issuer credit rating. The recovery rating of '6' is unchanged on those instruments, indicating our expectation of 0%-10% recovery in the event of a payment default or bankruptcy. - We revised upward our management and governance score to satisfactory from fair to reflect a solid executive bench,...

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