S&P Reverses Academy Downgrade
As expected, the ratings agency upgraded Academy to CCC+ from SD (selective default), restoring the chain to its original rating after a downgrade triggered by its purchase of $89.1 million of its debt in April at a discount. Moody’s labeled the exchange distressed at the time but did not downgrade the rating, noting that Academy had ample liquidity because of its $1 billion ABL.
Both ratings agencies said they expected Academy’s performance to remain weak for the next 12 months with S&P citing competition from other big box retailers and e-commerce as the chief threats. S&P added that it expects Academy ... Log in to view full article.