Missouri-based wholesale distributor Moran Foods LLC (doing business as Save-A-Lot) completed a refinance of its credit facilities in October 2023. We view the transaction as a distressed exchange tantamount to a default following its completion based on the transaction terms and our criteria. Therefore, we lowered our issuer credit rating on the company to 'SD'(selective default) from 'CCC+' and lowered our issue-level ratings on the first-lien and second-lien term loans to 'D' from 'CCC+' and 'CCC-', respectively. We will evaluate the company's revised capital structure and its recent strategic initiatives over the next few days and expect to raise our issuer credit rating on the company to the 'CCC' category. In addition, this will represent lower interest payments and exchange
