Moody's downgrades Matalan

Moody's Investors Service said it downgraded the corporate family rating and probability of default rating of Missouri TopCo Ltd. (Matalan) to B3 from B2.

Concurrently, Moody's downgraded Matalan Finance plc's senior secured rating to B1 with a loss given default assessment of 2 from Ba3 and its senior unsecured rating to Caa2 (LGD5) from Caa1.

The outlook is stable.

Moody's said the action reflects the continuing pressure on Matalan's earnings and Moody's view that the company's key metrics, as adjusted by the rating agency, are no longer commensurate with a B2 rating, notably that gross leverage should not exceed 6.5x.

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