Neiman Marcus bonds head deeper into junk territory

Neiman Marcus now has something in common with Sears Holdings.The luxury retailer on Thursday got downgraded by Standard & Poor’s to CCC+ from a B-. The ratings agency also has Sears in the C category — a “junk” rating that signals risk the company...

Neiman Marcus bonds head deeper into junk territory

Neiman Marcus now has something in common with Sears Holdings.

The luxury retailer on Thursday got downgraded by Standard & Poor’s to CCC+ from a B-. The ratings agency also has Sears in the C category — a “junk” rating that signals risk the company is in danger of falling into bankruptcy.

Neiman’s ability to generate sales growth has “deteriorated,” S&P noted, while also pointing to the department-store industry as one of the most challenged sectors.
“We have a negative outlook for all of the department stores,” said S&P credit analyst, Helena Song.

Dallas-based Neiman’s “capital structure is unsustainable over the long term,” with weak mall traffic and a highly promotional retail environment exacerbating its chances of recovering, according to S&P.

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