Missouri-based wholesale distributor Moran Foods LLC (doing business as Save-A-Lot) concluded a $65-million upsize of its super senior term loan on Oct. 15, 2024. While we expect the transaction to benefit the short-term liquidity, we continue to view the company's capital structure as unsustainable due to a free operating cash flow (FOCF) deficit and leverage credit metrics deterioration. Therefore, we affirmed all our ratings on the company, including our 'CCC+' issuer credit rating on Moran Foods LLC. The negative outlook reflects the risk that we will lower our rating if we view a specific default scenario, such as a selective default, as increasingly likely within the next 12 months. We plan to withdraw all our ratings on Save-A-Lot upon the
