Wednesday, August 9, 2017

Staples credit rating deemed junk status in wake of buyout

The nation’s top two credit rating agencies downgraded Staples Inc. well into junk status yesterday due to the financials of Sycamore Partners’ pending $6.9 billion leveraged buyout of the nation’s No. 1 office supplies chain.

S&P Global Ratings downgraded the Framingham company’s corporate credit rating four steps to B+ from BBB-, citing Staples’ substantial debt burden and “meaningfully weaker credit metrics” from the deal. S&P removed Staples from a negative CreditWatch in place since June 29, a day after the Sycamore deal was announced, saying the outlook now is “stable.”. . . more

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