What Is Rite Aid’S Current Credit Rating?

Fitch Ratings has downgraded Rite Aid Corporation’s Long-Term Issuer Default Rating (IDR) to “D” from “CCC” following the company’s Chapter 11 bankruptcy protection filing on October 15, 2023. The rating reflects Fitch’s view that the company’s capital structure appears increasingly unsustainable due to ongoing operational challenges. Rite Aid’s ‘B-‘ rating and Negative Outlook incorporate its weak position in the relatively stable U.S. drug retail business, its limited to negative FCF, and its high risk of going bankrupt.

S and P Global Ratings withdrew the Foreign Currency LT credit rating for Rite Aid on November 16, 2023. The FRISK® score marked Rite Aid Corporation as having a 10-to-50x greater risk of going bankrupt relative to the average publicly traded company.

On Tuesday, S and P Global Ratings downgraded Rite Aid Corp to “CCC-minus” from “CCC-plus” on increased risk from restructuring. The FRISK® score marked Rite Aid Corporation as having a 10-to-50x greater risk of going bankrupt relative to the average publicly traded company.

In summary, Fitch Ratings has downgraded Rite Aid Corporation’s Long-Term Issuer Default Rating to “D” from “CCC-+” following the company’s Chapter 11 bankruptcy filing. This decision is based on the company’s financial performance and the potential for increased risk from restructuring.

What went wrong at Rite Aid?

Rite Aid, the third-largest drugstore chain in the United States, has encountered considerable difficulties as a consequence of prolonged mismanagement and misguided decision-making. The company’s decision to file for bankruptcy in October was precipitated by the accumulation of liabilities associated with lawsuits pertaining to the distribution of opioids and the prevailing challenges within the retail pharmacy sector. In an article published by The Wall Street Journal, the company’s unfortunate history was detailed, with particular emphasis placed on the significant losses incurred over an extended period of time.

Is Rite Aid losing money?

Rite Aid, a US pharmacy chain, has reported a $307 million loss between March and May 2023, and a loss of about $3 billion over the past six years. The company, which employed over 6, 100 pharmacists and operated 2, 100 retail pharmacy locations across 17 states, plans to close 154 stores nationwide. It now operates around 1, 416 stores in 16 states. Rite Aid also sold off some of its businesses, including its Elixir Solutions business, to MedImpact Healthcare Systems for $577 million in February. The company’s bankruptcy court documents indicate a significant reduction in its footprint.

What is the current credit rating?

The dates of the agency ratings are as follows: March 5, 2021, and July 14, 2020. B2: May 7, 2020, and February 13, 2018.

Who has an AAA credit rating?

Credit ratings vary globally, with countries with high credit ratings generally having better ratings. The United States, for example, has a AAA credit rating, while countries in Europe and Asia, such as Australia, Canada, Denmark, Germany, Sweden, Switzerland, Norway, and Hong Kong, generally have AAA ratings.

Some countries can receive low credit ratings, such as “junk” or “SD”, which refer to countries that do not pay back some of their bonds. These ratings are generally considered worthless and should be considered by investors. The lowest credit rating a country can receive is CCC, which is the only rating above “junk” or “SD”, and is not a credit rating a country should have. Companies can rate certain countries as having “junk” or “SD” bonds, which are generally worthless.

What is my credit rating?

Credit scores can be obtained by checking your credit card, financial institution, or loan statement, purchasing them directly from major credit bureaus or providers like FICO, using a credit score service or free credit scoring site, or regularly checking your credit reports. You can access a free copy of your credit reports every 12 months from each of the three nationwide credit bureaus by visiting annualcreditreport. com.

You can also create a myEquifax account to receive six free Equifax credit reports each year, and enroll in Equifax Core Credit ™ for a free monthly Equifax credit report and a free monthly VantageScore® 3. 0 credit score. Ensuring the accuracy and completeness of your credit reports is essential for maintaining a healthy financial situation.

What companies have AAA credit rating?

Credit ratings are financial indicators used by credit rating agencies like Moody’s, Standard and Poor’s, and Fitch to assess the risk quality of debt securities like bonds. These ratings are assigned by Moody’s into various categories, such as Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C, WR, and NR for withdrawn and not rated, respectively. Standard and Poor’s and Fitch assign bond credit ratings in broader classes called “investment grade” or not.

Agency ratings often include indications of future upgrades or downgrades over the medium term. For example, Moody’s designates an Outlook for a given rating as Positive, Negative, Stable, or Developing. A bond is considered investment grade or IG if its credit rating is BBB− or higher by Fitch Ratings or S and P, or Baa3 or higher by Moody’s. These ratings are considered likely enough to meet payment obligations that banks are allowed to invest in.

Does Rite Aid have debt?

As of August 2023, the aggregate debt reflected on the balance sheet is $6. 58 billion.

What is the US credit rating today?

The ratings assigned by the agencies are as follows: Moody’s Aaa is indicative of a stable outlook, S&P A+ is indicative of a stable outlook, DBR is indicative of a stable outlook, S&P A is indicative of a stable outlook, and S is indicative of a stable outlook. In contrast, PAA+Negative is indicative of a negative outlook.

What is the Z score for Rite Aid?

Rite Aid, a large retail drugstore chain in the United States, is a potential value trap due to its low Altman Z-score of 1. 67. This low score indicates a high likelihood of financial distress, while a score above 3 indicates low risk. The Altman Z-score, invented by New York University Professor Edward I. Altman in 1968, is a financial model that predicts the probability of a company entering bankruptcy within a two-year time frame.

Rite Aid’s retail pharmacy segment generates revenue through the sale of prescription drugs and an assortment of merchandise, while its pharmacy-services segment relates to EnvisionRx, a subsidiary offering a broad range of pharmaceutical services.

Despite its seemingly attractive valuation, investors should consider a more in-depth analysis before making an investment decision. This complexity underlines the importance of thorough due diligence in investment decision-making.

What is Rite Aid credit rating?

Rite Aid Corp. has commenced a voluntary bankruptcy proceeding subsequent to an agreement with select senior secured noteholders, which has resulted in a downgrade of its issuer credit rating to “D.”

What is the credit rating scale?

A credit score between 300 and 850 is generally considered good, with a score of 700 or above. A score of 800 or above on the same range is considered excellent. Most consumers have credit scores between 600 and 750. In 2023, the average FICO® Score in the U. S. reached 715. A good credit score can help qualify for a credit card or loan with lower interest rates and better terms. However, different lenders use their own criteria for deciding whom to lend to and at what rates.

Achieving a good credit score can help you qualify for a credit card or loan with better terms. To improve your credit score, it is essential to understand what qualifies as a good credit score, what impacts your credit, and how to improve your credit.