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Fitch Rates Rite Aid's New 8.5% $150MM Convertible Notes 'CCC'.

NEW YORK New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 -- Fitch Ratings Fitch Ratings

An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris.
 has assigned 'CCC/RR6' ratings to Rite Aid Corporation's (Rite Aid, NYSE NYSE

See: New York Stock Exchange
: RAD) new 8.5% $150 million senior unsecured convertible notes due 2015. The proceeds of the new offering will be used to redeem its $150 million of its 6.125% senior unsecured notes due 2008 at a price equal to approximately 102% of the principal outstanding amount.

Fitch rates Rite Aid as follows:

--Issuer Default Rating (IDR IDR

In currencies, this is the abbreviation for the Indonesian Rupiah.

The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
) 'B-';

--$1.75 billion bank credit facility 'BB-/RR1';

--$1.25 billion term loans 'BB-/RR1';

--$1.061 billion 2nd lien senior secured notes 'BB-/RR1';

--$1.851 billion guaranteed senior unsecured notes 'CCC+/RR5';

--$758 million non guaranteed senior unsecured notes 'CCC/RR6'.

The Rating Outlook is Stable.

The ratings consider the risk associated with integrating over 1,800 Brooks and Eckerd stores with Rite Aid's existing store base and improving operations at these stores; the company's high leverage, with total adjusted debt/EBITDAR of 8.1 times (x) for the fiscal year ended March 1, 2008; operating statistics that trail those of competitors; and the intense competition in the drug retailing sector. The ratings also reflect Rite Aid's management's concerted efforts to improve the productivity of its store base, the positive demographics of the drug retailing industry, as well as the benefits from leveraging a larger store base.

Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used.

In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide.
 of such ratings are available on the agency's public site, Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental  are also available from the 'Code of Conduct' section of this site.
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Publication:Business Wire
Date:May 23, 2008
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