NY -- Standard&Poor's CreditWire 10/2/96 -- Standard&Poor's today has lowered its corporate credit rating and senior unsecured debt rating on Melville Corp. to single-`A'-minus from single-`A'-plus. The commercial paper rating has been lowered to `A-2' from `A-1'. The ratings have been removed from CreditWatch, where they were placed July 27, 1995. The outlook is negative. The Oct. 12, 1996 spin-off of Footstar, Inc. will substantially complete Melville's strategic restructuring program announced in October 1995. The new rating reflects the strong business position of the CVS drug chain and strong profitability, offset by reduced asset coverage following the sale and divestment of Melville's other businesses and the likelihood of opportunistic acquisitions that could result in higher debt
