Moody’s assigns Macy’s notes Ba2

Moody’s Investors Service said it assigned a Ba2 to the new exchanged Macy’s Retail Holdings, Inc. senior secured notes. The notes will have a second lien on the collateral which secures the Macy’s Inc.’s senior secured notes, and includes its San Francisco, Chicago, and Brooklyn locations, 35 mall assets, and 10 distribution centers.

The notes are rated Ba2, one notch above the Ba3 corporate family rating, reflecting the benefit of the collateral provided by the second lien. The exchange notes are also a notch below the senior secured notes reflecting their junior position to the senior secured notes which have a first lien, Moody’s said.

Moody’s also affirmed Macy’s Ba3 rating as well as the senior unsecured notes ratings at B1.

The outlook remains negative.

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