Monday, February 24, 2020

Guitar Center downgraded as gains fail to reduce debt load

Retail Dive
Moody's downgraded Guitar Center's credit rating deeper into junk territory last week, from Caa1 to Caa2.

The retailer of musical instruments is a "solid operator" and has managed modest growth in comp sales and EBITDA over the past three years, but "leverage remains high and cash flow is limited even after two distressed exchanges," Raya Sokolyanska, Moody's vice president and analyst, said in a press release.. . . more