Moody’s: General Shopping to negative

Moody's Investors Service said it affirmed the senior unsecured ratings of General Shopping Finance Ltd. at Caa1 and the subordinated debt rating of General Shopping Investments Ltd. at Caa3.

The outlook was revised to negative from stable.

In addition, Moody's America Latina affirmed the global scale, foreign currency corporate family rating of General Shopping Brasil SA at Caa1 (national scale, local currency corporate family rating at Caa1.br). The outlook was revised to negative from stable.

Moody’s said the negative outlook reflects the risks associated with General Shopping's weak liquidity profile due to the company's high financing costs; its limited options to significantly increase its earnings generation and profitability in the near-term and an undefined long-term strategy to address its pressured capital structure, which is further burdened by the growing balance of deferred interest payments on its $150 million 12% subordinated perpetual bonds.

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