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. 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
