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The downgrade is based on the view that the company may pursue a distressed restructuring or bankruptcy in the next six months, S&P Global said.
Rite Aid is preparing to file for bankruptcy in the coming weeks to address lawsuits the drugstore chain is facing over its alleged role in the sale of opioids, the Wall Street Journal reported last week, citing people familiar with the plan.
The company operates more than 2,330 stores in 17 U.S. states, although it is much smaller than rivals like Walgreens Boots Alliance (NASDAQ:WBA) and CVS Health (NYSE:CVS).
