S&P lowers Macy’s Retail second-lien notes to junk

S&P said it lowered its issue-level rating on Macy's Retail Holdings LLC’s second-lien notes to BB from BBB- following completion of the company's offer to repurchase them.

“Following payment of the total consideration for the tender of the second-lien notes in March, the liens upon the collateral securing the remaining outstanding second-lien notes have been automatically released. As a result, we lowered our issue-level rating on the second-lien debt to BB from BBB- and revised the recovery rating to 4 from 1,” S&P said in a news release.

The downgrade reflects the reduced recovery prospects for these notes given the release of the security, the agency said.

The BB issuer credit ratings and positive outlooks on Macy's Inc. and Macy's Retail Holdings are unchanged.

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