Fitch Rates Kroger's New $750MM Sr Unsec Notes 'BBB'; Outlook Stable

Business Wire, Jan 10, 2008

NEW YORK -- Fitch has rated The Kroger Co.'s (Kroger) new $750 million 6.15% 12-year senior unsecured notes 'BBB'. Proceeds from the offering will be used to refinance existing maturities and for general corporate purposes. The Rating Outlook is Stable.

The rating reflects Kroger's well executed operating strategy which has led to positive operating trends, its position as one of the largest U.S. supermarket companies with a diverse store base, and its strong cash flow generation. Also considered are the highly competitive operating environment and the pressure on operating margins over time as well as the Kroger's dedication to returning funds to shareholders.

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