Moody’s puts Shop Direct under review

Moody’s Investors Service said it placed under review for downgrade the B2 corporate family rating and B1-PD probability of default rating of Shop Direct Ltd.

The agency also placed under review for downgrade the B2 rating of the £550 million of 2022 senior secured notes issued by the company’s subsidiary, Shop Direct Funding plc.

“Moody’s decision to place Shop Direct’s ratings under review for downgrade reflects the fact that an increase in debt due to the higher customer redress costs could result in the company’s credit metrics remaining outside the parameters considered acceptable for a B2 rating for a prolonged period,” said the agency in a press release.

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