Moody’s lowers General Shopping, debt

Moody's Investors Service said it downgraded the senior unsecured ratings of General Shopping Finance Ltd. to Caa1 from B2 and the subordinated debt rating of General Shopping Investments Ltd. to Caa3 from Caa1.

At the same time, Moody's America Latina downgraded the global scale, foreign currency corporate family rating of General Shopping Brasil SA to Caa1 from B2 and national scale, local currency corporate family rating to Caa1.br from Ba1.br.

The outlook was revised to stable from negative.

Moody’s said the downgrade reflects General Shopping's elevated default risk over the next 12 to 24 months. In particular, General Shopping's senior unsecured perpetual notes continue to trade at a large discount to par, implying that the risk of a future distressed exchange is high.

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