Fitch Ratings has withdrawn its ratings on Safeway Inc. in anticipation of the acquisition of Safeway by AB Acquisition LLC, following final FTC clearance for the merger.
Fitch does not have sufficient information to provide ratings on the company's new capital structure post the merger of Safeway and Albertson's. As indicated in prior commentary, and based on preliminary information indicating pro forma adjusted leverage of around 6.0x, Fitch believes the merged entity would be rated in the 'B' category.
Fitch currently rates Safeway as follows with a Negative Rating Watch:
Safeway Inc.
--Long-term IDR 'BBB-';
--Senior Unsecured Notes 'BBB-';
--Bank Credit Facilities 'BBB-';
--Short-term IDR 'F3';
--Commercial Paper 'F3'.
Additional information is available at 'www.fitchratings.com'.
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=978826
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