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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Jordan who wrote (21999)	9/21/1999 10:42:00 AM
From: Susan Saline	Respond to of 43080

selling the PPRO at 42

To: Jeff Jordan who wrote (21999)	9/22/1999 4:56:00 PM
From: Jeff Jordan	Read Replies (2) \| Respond to of 43080

RAD Yikes! good thing I got out at 17!!!!!!!! maybe I should short some here before tomorrow... now trading 13 7/8 in afterhours on this news! S&P may cut Rite Aid ratings (Press release provided by Standard & Poor's) NEW YORK, Sept 22 - Standard & Poor's today placed its ratings on Rite Aid Corp. and Rite Aid Lease Management Co. on CreditWatch with negative implications (see list below). The CreditWatch listing reflects concerns over continued profit pressures at Rite Aid. Rite Aid is not expected to release fiscal 2000 second-quarter results until October; however, year-over-year front-end same-store sales declined and comparable-store sales in the West were flat. Rite Aid needs to develop an appropriate merchandizing strategy for its large West Coast stores or divest those stores. Currently, it has agreed to sell 38 of those stores for $186 million and continues to be involved in discussions regarding corporate transactions that could be material. Earnings before interest, taxes, depreciation, and amortization (EBITDA) coverage of interest has been deteriorating due to lower profitability and debt financed acquisitions and expansion. Coverage measures are weak for the rating category: EBITDA coverage of interest expense fell to 2.6 times (x) in the trailing 12 months ending May 29, 1999, from 2.9x in fiscal 1999 and 3.3x in fiscal 1998. A further deterioration of credit measures could result in a ratings downgrade. In addition, the company is still in the process of renegotiating a $1.3 revolving credit facility that expires in late October. Standard & Poor's will meet with Rite Aid's management team shortly to discuss business prospects and financing strategies over the near to intermediate term. RATINGS PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS Rating Rite Aid Corp. Corporate credit rating BBB/A-2 Senior debt rating BBB Bank loan rating BBB Subordinated debt BBB- Commercial paper A-2 Mixed shelf debt (preliminary) BBB/BBB-/BB+ Rite Aid Lease Management Co. Corporate credit rating BBB Preferred stock BB+