Fitch Rates Kroger's New $775MM Sr. Unsec. Notes 'BBB'; Outlook Stable

Business Wire, March 20, 2008

NEW YORK -- Fitch has rated The Kroger Co.'s (Kroger) new $400 million 5.00% 5-year senior unsecured notes and $375 million 6.90% 30-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 sustained pressure on operating margins as well as the company's dedication to returning funds to shareholders.

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