Moody?s downgraded J.C. Penney?s debt rating deeper into junk status

Moody?s Investors Service on Tuesday lowered the credit ratings it assigns to J.C. Penney?s debt, which were already below investment grade.

Moody?s analyst Margaret M. Taylor said while Penney?s new $1.75 billion term loan will bolster the company?s liquidity ?it will not solve Penney?s longer term performance concerns nor reduce the level of anticipated cash burn at J.C. Penney over the next twelve months.?

?The downgrade acknowledges that the term loan will greatly weaken J.C. Penney?s capital structure at a time when its earnings are at precarious levels,? Taylor said. ?The downgrade reflects Moody?s opinion that the position of the existing bondholders has been weakened by the addition of further secured debt ahead of the unsecured notes.?

Earlier today Fitch Ratings rated the new debt three steps below investment grade.

This entry was posted in Retail and tagged downgrade, J.C. Penney, Moody's Investors Service by Maria Halkias. Bookmark the permalink.

Source: http://bizbeatblog.dallasnews.com/2013/04/moodys-downgraded-j-c-penneys-debt-rating-deeper-into-junk-status.html/

overeem laron landry mary j blige burger king islands 2013 nissan altima masters par 3 contest google augmented reality glasses