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 Standard&Poor's Ratings Services' expectation that revenues should remain positive in fiscal 2011 because of higher unit volume and commodity prices. However, we estimate that margins will likely be relatively flat. 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,
