Thursday, September 19, 2019

Fitch joins S&P in downgrading J.C. Penney on turnaround uncertainty

Retail Dive
Fitch Ratings downgraded J.C. Penney's credit rating deeper into junk territory, to CCC+ from B-. The downgrade was based on "continued market share losses and declining EBITDA, with lack of visibility for a material turnaround although there are no near-term liquidity concerns," analysts said in an emailed report.

Analysts also described Penney's capital structure as "untenable" but noted it has the liquidity to fund seasonal working capital and near-term debt maturities. They also expect Penney's store traffic and core apparel sales to keep sliding. . . . more