Operating performance at the Netherlands-based general merchandise and food retailer Hema has been below our previous expectations due to the challenging economic and competitive market environment. We are lowering our corporate credit rating on Hema to 'B' from 'B+'. We are also lowering our issue-level ratings on the company's €80 million super senior revolving credit facility due 2018 to 'BB' from 'BB+', on the €565 million senior secured notes due 2019 to 'B' from 'B+', and on the €150 million senior unsecured notes due 2019 to 'CCC+' from 'B-'. The recovery ratings are unchanged at '1+','3', and '6', respectively. The stable outlook reflects our view that although the operating performance will remain weak, the revenue decline should moderate. We expect
