Moody’s raises Matalan, notes

Moody's Investors Service said it upgraded Missouri TopCo Ltd.’s (Matalan) corporate family rating to B3 from Caa1.

"Our decision to upgrade Matalan's ratings reflects our view that the recovery in financial performance and consequent improvement in credit metrics will enable the company to successfully refinance its debt in the coming months," David Beadle, Moody's vice president, senior credit officer and lead analyst for Matalan, said in a news release.

"In the context of a highly competitive market, where peers have cited weak consumer demand amid FX-driven cost pressures, Matalan's return to sales growth and recovery in profitability has been notable."

Concurrently the agency upgraded Matalan's probability of default rating to B3-PD from Caa1-PD.

Moody’s also upgraded Matalan Finance plc’s £342 million first-lien senior secured notes due in June 2019 to B2 from B3 and roughly £138 million outstanding second-lien senior secured notes due in June 2020 to Caa2 from Caa3.

The outlook on all ratings is stable.

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