S&P cuts Macy’s notes to BB-

S&P said it downgraded the rating on Macy’s Inc.’s proposed senior secured notes due 2025 to BB- from BB and revised the recovery rating to 2 from 1 following the company’s proposed upsizing to $1.3 billion of notes from $1.1 billion previously.

“The additional secured debt has reduced the expected recovery value for the secured noteholders in our simulated default scenario. The 2 recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 75%) recovery in the event of a default,” S&P said in a press release.

All other ratings on Macy's, including the B+ issuer credit rating and negative outlook, remain unchanged, S&P said.

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