Fitch downgrades Golden Eagle

Fitch Ratings said it downgraded Golden Eagle Retail Group Ltd.’s (Golden Eagle) long-term issuer default rating and senior unsecured rating to BB- from BB+.

Fitch also said it assigned a negative outlook.

The ratings also were removed from Ratings Watch negative.

The downgrades reflect deterioration in Golden Eagle’s financial profile and weakness in its core business, the agency said.

The negative outlook reflects an expectation that leverage may continue rising unless there is a meaningful turnaround in business, Fitch said.

The operating environment for Golden Eagle has been difficult in the past two- to three-years due to changing consumer behavior and a lack of differentiation among department stores, the agency said.

Golden Eagle is looking to offset the weakness in sales by growing other revenue sources, such as direct sales, rental income and auto services, Fitch said.

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