Largest wholesale grocery distributor in the U.S. based on revenue; Intense competition, rising production costs and weak economic conditions have resulted in inconsistent growth and margin pressures for this sector; and Significant customer concentration, including from A&P bankruptcy in fiscal 2015. A fairly low-cost operator because of size and economies of scale; Significant debt leverage including off-balance sheet multi-employer pension liabilities and capitalized operating leases; and High swings in working capital to fund inventory investments. The stable outlook on C&S Wholesale Grocers reflects our expectation that the company will be able to sustain EBITDA margins, adequate liquidity, and a narrow range of credit metrics including adjusted debt to EBITDA between 4x and 5x and funds from operations (FFO) to debt
