S&P ups Macy’s

S&P said it raised its issuer rating for Macy’s Inc. and Macy's Retail Holdings LLC’s senior unsecured notes to BB+ from BB.

“Macy's has made material progress toward improving liquidity and operating performance while maintaining credit metrics well below our upside leverage threshold of 3x, even in this volatile year for apparel and department store companies,” the agency said in a press release.

S&P noted Macy’s reaffirmed its sales guidance and boosted its earnings guidance for 2022.

“We expect fourth-quarter 2022 EBITDA to decline 35% from the year-ago period. We believe it would take a much steeper decline next quarter to get to S&P Global Ratings' lease-adjusted 3x leverage in fiscal 2022. This would be a significant miss that we see as unlikely. We expect a softer holiday amid recessionary pressures with some downside, but do not believe it will be an invisible season compared to last year,” the agency said.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.