U.S.-based hard-discount grocer Moran Foods LLC's (Save-A-Lot) challenges with implementing its turnaround plan have reduced liquidity and caused credit metrics to erode significantly. In our view, Save-A-Lot's weak operating results and elevated cash burn heighten the risk of a restructuring event occurring over the next 12 months. We are lowering our issuer credit rating to 'CCC' from 'CCC+'. At the same time, we are lowering our issue-level rating on the company's term loan to 'CCC' from 'CCC+'. Our recovery ratings on the debt are unchanged. The negative outlook reflects the possibility that we could lower the ratings further if we envision further operational or executional issues leading to a default scenario within six months. The downgrade reflects our view that
