DISTRESSED DAILY: Rite Aid Downgraded as Default Insurance Jumps

Rite Aid Corp.’s rosy guidance for the future is facing skepticism from analysts and investors.

The company’s debt has tumbled since it reported results last month -- its 8% notes due 2026 that traded in mid-April for more than 90 cents on the dollar now change hands for below 80 cents -- and the cost to insure its unsecured notes against default for five years was nearly 54 points upfront on Friday, according to ICE Data Services.

S&P Gobal Ratings downgraded the drugstore’s credit rating a notch deeper into junk territory on Thursday, citing its high leverage, dimming growth ...