Wednesday, March 11, 2009

Rite-Aid Hits the Bottom Rung

Moody's just released an ominous list called the "Bottom Rung." It contains 283 companies that Moody's says are most likely to default on their debts. See Moody's Aims to Be Ahead on Defaults.

You will not be shocked to learn that good ol' Rite-Aid (RAD) has the dubious distinction of being 8th on this list of doom based on rated debt (source). Their "probability of default" rating is Caa2, which is a technical finance whiz way to say FUBAR.

I last wrote about Rite-Aid in June Rite-Aid: From Worse to Awful, when their stock price was a relatively robust $1.35 versus only a quarter ($0.25) after yesterday's stock market rally.

The last year has been tough for all stocks (as my 201K statement sadly shows), but it's been even tougher for Rite-Aid (down 92% as of yesterday) compared to Walgreens ( down 39%) or CVS Caremark (down 38%). Click here to see an up-to-date, real-time stock price comparison.

Time to start building industry scenarios for the end-game . . .

3 comments:

  1. That photo made me laugh out loud!

    ReplyDelete
  2. Rite-Aid has always had a poor reputation among pharmacists who work for it (over many years). It will not be a great loss when they are gone.

    ReplyDelete
  3. Check out this WSJ blog after wholesaler stocks dropped today:

    Headache for Drug Wholesalers?

    Looks like RAD + MRK-SCP got investors spooked!

    Adam

    ReplyDelete

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