S&P rates Best Buy notes BBB

S&P said it assigned its BBB issue-level rating to Best Buy Co. Inc.’s proposed senior unsecured notes.

“We rate the unsecured notes at the same level as our long-term issuer credit rating on Best Buy because its leverage is sufficiently low to offset potential subordination risk,” S&P said in a press release.

Proceeds are expected to be used to fund the repayment of its $650 million of notes due March 15, 2021.

“The refinancing will reduce the company’s interest expense and extend its debt maturity profile, which will further strengthen its liquidity position,” S&P said.

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