In a blow to the US retailing sector, never mind Macy’s (NYSE:M), the stock was on Thursday put on creditwatch by ratings agency Standard & Poor’s.
That means there is a 50% chance that S&P will downgrade Macy’s ‘BBB’ corporate credit rating to at least one notch south at BBB minus in the next three months. If that happens it would render Macy’s one notch above junk status.
The news came after investors hit the sell button when Macy’s issued a disappointing earnings report after the bell on Wednesday and said it will close 68 stores and cut more than 10,000 jobs.
The retailing sector was supposed to be a star performer in 2017, as pro-business and pro-growth US President-elect Donald Trump gets sworn in later this month.
Macy’s shares were down 14.2% at $30.77 on Thursday.
Story by ProactiveInvestors