S&P lowers Missouri TopCo

S&P said it downgraded Missouri TopCo Ltd. and its first-lien debt to CCC from B-. The agency also lowered the rating on the second-lien secured debt to CC from CCC-. The recovery ratings are unchanged on the first-lien secured debt and second-lien secured debt at 3 (50%-70%; rounded estimate: 65%) and 6 (rounded estimate: 0%).

The company is the parent of U.K.-based retailer Matalan.

“We forecast that the operating performance of Matalan's parent, Missouri TopCo Ltd. will materially deteriorate over the next few weeks due to Covid-19-related disruptions to trading, including the announced closures of all its 232 stores. This has happened amid a drop in discretionary demand that has seen the company's earnings and cash flows plunge,” the agency said in a press release.

The outlook is negative.

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