The speculative-grade rating on privately owned C&S Wholesale Grocers Inc. and 75% owned subsidiary, C&S Group Enterprises LLC, reflect its high debt leverage and our expectation that revenues should turn positive in fiscal 2011 and beyond, as the company adds new customers. We view C&S Wholesale Grocers' business risk profile as weak even though the company is one of the leading wholesale grocery distributors. This is based on its significant customer concentration. In addition, we characterize the company's financial risk profile as aggressive, reflecting its high debt leverage, characteristically thin margins, some seasonality to quarterly operating results, and moderate cash flow protection measures. In our view, C&S Wholesale Grocers plays an important role between suppliers and grocery retailers and its
