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J.Crew Downgraded by Moody’s

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On December 1, 2016, Moody’s Investors Service downgraded Chinos Intermediate Holdings A, Inc.’s (indirect parent company of J.Crew Group, Inc. [together, J.Crew]) corporate family rating to Caa2 from B3, probability of default rating to Caa2-PD from B3-PD and the rating on its PIK toggle notes to Ca from Caa2. According to Moody’s, the downgrade to Caa2 reflects the continued declines in J.Crew’s revenue and EBITDA that, when coupled with its high debt load, has led to very high leverage and an unsustainable capital structure. J.Crew has taken action to improve sales and profitability, such as managing inventory and keeping expense levels down, implementing sourcing and supply chain improvements and closing underperforming stores. However, Moody’s expects that improvement will take time as challenges persist within the overall apparel retail environment, particularly related to weak customer traffic and high promotional levels. Read more on distressed companies.

The post J.Crew Downgraded by Moody’s appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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