NEW YORK -- Citing a decline in luxury spending, Moody's Investors Service on Monday cut the rating of Tiffany & Co.'s convertible subordinated Eurode-bentures to BAA2 from BAA1.
Moody's said about $50 million of long-term debt is affected.
The agency said the downgrade reflects Tiffany's lower-than-anticipated financial performance and debt coverage measurements, exposure to weak Japanese and European economies and changing consumer values on luxury goods.
Tiffany's has expanded its operations in Japan, but consumers and business gift customers worldwide have been conservative when spending on luxury goods, a trend that is likely to continue, Moody's added.
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