Dive Brief:
S&P Global Ratings raised its outlook for Macy s from negative to positive, signaling that the retailer could get an upgrade from its current B+ credit rating in the coming months.
Explaining the reasons behind the outlook change, S&P analysts Helena Song and Sarah Wyeth said in a release, Encouraging signs of an accelerating economic recovery are emerging, and we believe operating conditions for apparel retailers are fast improving.
The analysts also cited lower-than-expected profit and sales declines at Macy s in the fourth quarter as well as momentum going into Q1.
Dive Insight:
At the outset of 2020, Macy s had deep, evident troubles amid the persistent doldrums of the department store sector. After the holiday season of 2019, the retailer posted a small sales decline for Q4 and unveiled yet another turnaround plan aimed at changes in retail that many speculated were leaving Macy s behind.
Dive Brief:
Party City plans to issue $725 million in new secured bonds due 2026 that it would use to pay off a term loan facility that matures next year, the company said in a press release.
The offering will be made privately to institutional buyers, according to the company. Along with paying down its term loan, the company would also use proceeds to repurchase other debt.
S&P Global Ratings upgraded Party City to CCC+ from CCC on the news of the bond offering, according to an emailed release. Analysts with the ratings agency said the transaction would address Party City s upcoming loan maturity but still leaves the company highly leveraged.