NEW YORK — Moody's Investors Service said Monday it was affirming all of Safeway's existing ratings while maintaining a stable outlook.
"Although Safeway's credit metrics in the last fiscal year have been consistently weak for the rating category, we expect the momentum of an improving economy and the positive initiatives undertaken by management [to] result in improving trends in operating performance and credit metrics in the near term," a Moody's analyst said.
Moody's also assigned a Baa2 rating to the new $300 million unsecured notes issued by Safeway Canada.
The ratings include a Baa2 senior unsecured rating, which Moody's said reflects Safeway's "considerable scale, strong cash flow and its position as the second largest supermarket chain in North America."
Other ratings that were affirmed rantings include long-term issue ratings at Baa2; senior unsecured shelf at (P)Baa2; and commercial paper at P-2.