Retailers on Ratings Agencies’ Watch List

RETAILER            REASON

Bon-Ton Stores    Declining same-store sales and operating margins hurt ability to invest in technology and real estate.

Claire’s Stores      High-yield bonds; difficult mall traffic trends, and economic headwinds in Europe.

J. Crew                   Leveraged debt structure; increased competition from fast fashion

Sears Holdings     High-yield bonds; institutional term loans; cash-burn rate; lack of clear catalyst for profit improvement

Nine West              High-yield bonds; institutional term loans; fashion miscues, and poor trends in women’s denim.

99 Cents                 High-yield bonds; institutional term loans

Rue 21                      High-yield bonds; institutional term loans

True Religion        Institutional term loans; adverse denim trends

** Data from Fitch Ratings and Moody’s Investors Service