S&P downgrades outlook for Wegmans Food Markets

New York City Standard Poor's Ratings Services said it lowered the corporate credit rating for Wegmans Food Markets to ‘BBB+’ from ‘A-.’ The outlook is stable.

"This action reflects our reassessment of Wegmans' business profile, credit metrics which are more reflective of ‘BBB+’ ratings following the company's increased debt levels due to higher capital spending and lower operating margins," said Standard Poor's credit analyst Stella Kapur.

In addition, given the competitive supermarket environment and Standard Poor's expectation that Wegmans' free cash flow will remain negative in 2009, credit metrics are likely to stay at current levels over the intermediate term.