Fitch downgrades Signet

Fitch Ratings said it downgraded the long-term issuer default rating for Signet Jewelers Ltd.'s to BB from BB+.

The outlook is stable.

The downgrades result from ongoing weak operating trends, lower-than-expected debt reduction following the proposed partial sale of Signet's consumer financing business and the company's updated financial policy, all of which combine to yield expectations of leverage trending at higher than 4x in the medium term, Fitch said.

The ratings continue to reflect Signet's leading share in the specialty jewelry market in the United States, as well as the United Kingdom and Canada, the agency said.

The ratings also consider modest EBITDA upside from long term sales growth opportunities, expense synergies related to the company's 2014 acquisition of Zale and recently announced cost reduction efforts, Fitch 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.