Rochester,NY 7/13/2009 3:00:01 PM
News / Finance

KR - Kroger will Possibly tense up even without upgrading - Sourced WhisperFromWallStreet.com

KROGER CO

KROGER CO,KR

COMPANY NEWS

Kroger Co may need some time to earn its sought-after rating upgrade, but its bonds are still worth owning as a haven in the face of an anemic economic recovery, strategists said. Long a favorite of credit investors, Kroger is already treated in the credit default swaps market as though it were rated two steps higher than its Baa2 rating, with five-year swaps trading at about 90 basis points, according to the capital markets research group at Moody's Analytics. Its bonds, meanwhile, are trading about three steps higher than its rating.

COMPANY INFORMATION

The Kroger Co., together with its subsidiaries, operates as a food retailer in the United States. The company operates supermarkets under four formats: combination food and drug stores (combo stores), multi-department stores, marketplace stores, or price impact warehouses. The combo stores operate as food stores that offer specialty departments, including natural food and organic sections, pharmacies, general merchandise, and pet centers, as well as perishables, such as fresh seafood and organic produce. The multi-department stores sell a selection of general merchandise items, which include apparel, home fashion and furnishings, electronics, automotive products, toys, and fine jewelry.

After Hours: 21.66 0.00 (0.00%) 8:00PM ET

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