Reuters.com - March 26, 2004
Moody's Investors Service has placed the A3 rating of the GBP 331,119,309 Secured Bonds due 2023 issued by Highbury Finance B.V. on review for possible downgrade. Moody's also placed the A3 rating of the GBP 100,677,717 Class A Floating Rate Notes due 2023 and the A3 rating of the GBP 30,000,000 Class B Floating Rate Notes due 2023 issued by Dragon Finance B.V. on review for possible downgrade.
The news comes the same day Sainsbury announced it was selling off its US supermarkets business for £1.3bn. The 202 stores, trading as Shaw’s Supermarkets, located in several New England states will be sold to US market rival Albertsons Inc., netting the UK food retailer a post-tax profit of more than £225m.
The rating review is prompted by Moody's decision to review for possible downgrade the A3 rating of J Sainsbury PLC's senior long-term debt. Moody's A3 rating on the Highbury Finance B.V. Secured Bonds is principally based on the strength of Sainsbury as lessee and guarantor.
The Dragon Finance securitisation represents a 23-year sale and leaseback transaction of 10 supermarket sites to Sainsbury, the UK retailer. The Highbury Finance securitisation represents a 23-year sale and leaseback transaction of 16 supermarket sites to Sainsbury.
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