S&P downgrades Macy's to BB

S&P said it lowered all of its ratings on Macy's Inc., including the issuer credit rating to BB from BB+.

The outlook is negative.

“The downgrade reflects our expectation that Macy's will significantly underperform our previous base-case forecast,” S&P said in a news release.

In response to government mandates in the United States for all nonessential business to close, Macy's has temporarily closed its stores for two weeks. S&P said it expects closures to extend for a meaningful portion of the fleet.

“As a result, we now expect Macy's revenues and profits to decline significantly in the first two quarters of fiscal 2020 and for a gradual recovery in the back half of the year,” the agency said in the news release.

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