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NEW YORK (AP) -- Credit rating agency Standard & Poor's said Thursday it would not change Nash Finch Co.'s corporate credit rating after the wholesale food distributor received a notice of default on a loan obligation. In September, Nash Finch received a default notice from hedge funds claiming the company was in breach of a convenant within its senior subordinated convertible notes. Nash Finch claims it made all adjustments to the conversion rate required after it increased its stock dividend. S&P left Nash Finch's rating at a speculative-grade "B+." S&P said in a research note it does not see any immediate risk to Nash Finch's liquidity levels or balance sheet. A Minnesota court has issued a temporary restraining order preventing the funds from accelerating repayments of the debt. On Wednesday, Moody's Investors Service said it may cut its credit rating on Nash Finch due to the notice and instability surrounding the issue. Shares of Nash Finch fell 10 cents to $40.90 in midday trading.
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