More on Rite Aid

Rite Aid's strategy was praised by the New York Times: "Analysts said that Rite Aid is poised to thrive, citing stronger sales and a boom in generic prescription drugs."

But some negative opinions were raised as well. Toronto's National Post questioned the deal:

A deal by Jean Coutu Group Inc. to sell its 1,858 U.S. drugstores in exchange for cash and a 32% holding in Rite Aid Corp. has left both stock investors and bondholders nervous, with some credit watchers predicting a revolt by holders of US$850-million worth of high-yield Jean Coutu debt that is part of the transaction.

Meanwhile, Moody's indicated they might downgrade Rite Aid:

Moody’s Investors Service has put Rite Aid Corp.’s credit rating on review following the drug giant’s announced purchase of Eckerd this week, and said a downgrade is possible.

The buyout puts Rite Aid at risk of taking on an additional $2.3 billion in debt, in addition to the burden of the leases that had been paid by Eckerd’s parent company, the Jean Coutu Group.