Moran Foods LLC Downgraded To 'SD' From 'CCC' On Missed Interest Payment

U.S.-based hard-discount grocer Moran Foods LLC (Save-A-Lot) elected not to make an interest payment due Dec. 31, 2019, on its first-lien term loan, and it has entered into a forbearance agreement. We believe the company's decision was strategic, given its announcement that it has reached a restructuring support agreement with its forbearing lenders. We lowered the issuer credit rating to 'SD' (selective default) from 'CCC' and the issue-level rating on its first-lien term loan to 'D' from 'CCC'. We will reevaluate our ratings upon completion of a restructuring or if other developments arise. SAN FRANCISCO (S&P Global Ratings) Jan. 9, 2020--S&P Global Ratings today took the rating actions listed above. The downgrade follows Moran Foods LLC's (Save-A-Lot's) missed Dec. 31,

...January 9, 2020 - U.S.-based hard-discount grocer Moran Foods LLC (Save-A-Lot) elected not to make an interest payment due Dec. 31, 2019, on its first-lien term loan, and it has entered into a forbearance agreement. - We believe the company's decision was strategic, given its announcement that it has reached a restructuring support agreement with its forbearing lenders. - We lowered the issuer credit rating to '##' (selective default) from '###' and the issue-level rating on its first-lien term loan to 'D' from '###'. - We will reevaluate our ratings upon completion of a restructuring or if other developments arise. SAN FRANCISCO (S&P Global Ratings) Jan. 9, 2020--S&P Global Ratings today took the rating actions listed above. The downgrade follows Moran Foods LLC's (Save-A-Lot's) missed Dec. 31, 2019, interest payment on its $740 million first-lien term loan. Although the company has reached a forbearance agreement with lenders representing a supermajority position of the loan, we view...

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