Moody's downgrades Saks

Moody's Investors Service said it downgraded the ratings of Saks Inc. and left the ratings on review for further possible downgrade following the company's announcement it has received notice of default under its $230 million senior convertible notes.

Downgraded ratings include the senior implied to B2 from B1, senior unsecured debt guaranteed by operating subsidiaries to B2 from B1 and the senior unsecured long-term issuer rating to B3 from B2.

The action reflects the high likelihood that the company will not file its financial statements before the 60-day cure period under the indenture has elapsed, the risk that the sale of certain assets to Belk, Inc. may not close on a timely basis and the ongoing uncertainty regarding the response of vendors and other constituencies to the notice of default, Moody's said.

© 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.