Kroger and Albertsons are large U.S. supermarket operators. Their proposed merger was terminated in December 2024, and they now operate independently. For net lease investors, one difference is credit: Kroger is rated investment grade and Albertsons is rated below investment grade.
Head-to-Head
| Kroger | Albertsons | |
|---|---|---|
| Rated entity | The Kroger Co. | Albertsons Companies, Inc. |
| S&P | BBB | BB+ |
| Moody’s | Baa1 | no verified rating |
| Rating sources and dates | S&P Global Ratings BBB, as of December 16, 2024; Moody’s Baa1, as of September 28, 2026. Ratings checked October 8, 2026. | S&P Global Ratings BB+, as of June 15, 2026. Ratings checked September 27, 2026. |
| Investment grade status | Investment Grade | Below Investment Grade |
| Stores | 2,697 supermarkets in 35 states and D.C. (January 31, 2026) | 2,240 stores in 35 states and D.C. under 22 banners (June 20, 2026) |
| Ticker | KR (NYSE) | ACI (NYSE) |
| Median asking cap rate (listings we track) | 5.00% (9 listings) | 5.75% (5 listings) |
Store counts from Kroger’s Form 10-K for the year ended January 31, 2026 and Albertsons’ Form 10-Q for the quarter ended June 20, 2026. Ratings update from our ratings database; “no verified rating” means we have not verified a current rating from that agency against a primary source. Kroger’s Moody’s grade is the rating listed for its new senior notes in Kroger’s September 28, 2026 pricing term sheet, not a separately verified issuer rating. Cap rates are live asking cap rates on listings InvestmentGrade.com tracks; asking cap rates are not closed-sale cap rates.
Credit Ratings
Our database shows The Kroger Co. at BBB from S&P and Baa1 from Moody’s, and Albertsons Companies, Inc. at BB+ from S&P and no verified rating from Moody’s; the table above gives each rating’s source and date. The investment grade floor is Baa3 at Moody’s and BBB‑ at S&P. Albertsons’ S&P rating is below the BBB‑ floor, so Albertsons does not meet a mandate that requires an investment grade S&P rating.
Kroger’s 2025 Form 10-K describes the merger with Albertsons as terminated, and both companies now pursue standalone plans. Both run large networks of supermarkets with pharmacies, and Kroger also operates fuel centers at many stores.
Ratings come from our tenant ratings database. For how the scale works, see the investment grade guide.
Cap Rates
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| Kroger | BBB / Baa1 | 5.00% | 5.00% to 5.25% | 9 | −24 bps |
| Albertsons | BB+ / n/a | 5.75% | 5.50% to 9.00% | 5 | +51 bps |
Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 16, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file.
As of October 8, 2026, the Kroger listings InvestmentGrade.com tracks included fuel center ground leases alongside supermarket buildings, while the Albertsons listings were supermarket buildings, and the number of listings for each tenant was small (see the counts in the table above). The two medians therefore do not compare like properties and do not isolate the effect of the rating difference: credit is one possible factor, alongside property type, location, store sales, remaining term and lease structure. A single snapshot of listings also does not show how often these properties sell, so compare a specific property with recent sales as well as the live medians.
Lease Structure and Real Estate
Many grocery leases sit in shopping centers, and freestanding or shadow-anchored grocery properties also trade. Kroger reports that approximately 51% of its supermarkets were operated in company-owned facilities as of January 31, 2026, including some company-owned buildings on leased land (Form 10-K). Check the tenant entity (Albertsons operates through many banners and subsidiaries), the remaining term, renewal options, rent increases, co-tenancy rights and who pays for roof, structure and parking.
For a large supermarket building, store sales, the trade area and whether the site can be divided matter to residual value.
Bonds vs. Real Estate
Both companies have issued bonds, so a property’s cap rate can be compared with the tenant’s bond yields. See Kroger bonds vs. NNN. The 10-year Treasury is 5.24% and the ICE BofA US Corporate Index (investment grade) yields 5.99% as of October 1, 2026. See the bond-to-NNN spread table.
Which Fits Your Mandate
- Kroger suits buyers who need an investment grade grocery tenant, when The Kroger Co. signs or guarantees the lease; confirm the tenant entity in the lease.
- Albertsons may suit buyers who accept a below investment grade parent credit, provided the store, location, lease and any guarantor support the risk; confirm which Albertsons entity signs and guarantees the lease.
See the Kroger and Albertsons tenant pages and Publix vs. Kroger.
Comparing Grocery Net Lease Properties?
We can compare specific Kroger and Albertsons offerings against current listings and recent sales. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission. Investment Grade Capital, a service of Investment Grade LLC, can match you with lenders.
Request a buyer consultation or email team@investmentgrade.com.
Frequently Asked Questions
What are Kroger’s and Albertsons’ credit ratings?
The Kroger Co. is rated BBB by S&P and Baa1 by Moody’s (investment grade). Albertsons Companies, Inc. is rated BB+ by S&P (not investment grade), and our database shows no verified rating from Moody’s.
How far is Kroger above the investment grade floor?
Our ratings database shows The Kroger Co. at Baa1 from Moody’s, where the investment grade floor is Baa3, and BBB from S&P, where the floor is BBB‑. The Moody’s grade is the rating Kroger’s September 28, 2026 pricing term sheet lists for its new senior notes, not a separately verified issuer rating. Sources and dates: S&P Global Ratings BBB, as of December 16, 2024; Moody’s Baa1, as of September 28, 2026. Ratings checked October 8, 2026.
Did Kroger and Albertsons merge?
No. Their proposed merger was terminated in December 2024, and the companies operate independently.
Do Albertsons listings ask higher cap rates than Kroger listings?
The live table on this page shows each tenant’s median asking cap rate in the listings InvestmentGrade.com tracks; asking cap rates are not closed-sale cap rates. As of October 8, 2026, the Kroger listings included fuel center ground leases alongside supermarket buildings, while the Albertsons listings were supermarket buildings, and both sets were small, so the two medians do not compare like properties and do not measure the effect of Albertsons’ below investment grade rating. Credit is one possible factor; individual store, location and lease factors can outweigh it.
Sources: Kroger Co. Form 10-K for the year ended January 31, 2026; Albertsons Companies, Inc. Form 10-Q for the quarter ended June 20, 2026.
Educational content only. InvestmentGrade.com is a commercial real estate brokerage and educational publisher. We do not sell, broker, underwrite, or solicit any bonds, securities, or investment products. Yields, ratings, and prices referenced fluctuate continuously and are sourced from public market data as of the date noted. Nothing on this page constitutes investment advice, an offer to sell, or a solicitation to buy any security. Consult a licensed broker-dealer, registered investment advisor, or tax professional before making any investment decision. For SEC investor education, visit investor.gov.
