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Retail Junk Bond Watch

Belk Inc.’s plan to restructure its debt with the help of a Chapter 11 filing was another reminder of just how hard the coronavirus has hit fashion’s finances. The company’s credit rating — at Caa1 in the reckoning of Moody’s Investors Service — was a warning sign that the department store was on the edge. But there are plenty of other firms borrowing in the mid to lower reaches of the speculative or so-called “junk” debt market. Here, the standings according to Moody’s.
Company (Affiliation) Long-term Rating Outlook Definition
Jill Acquisition (J. Jill) Caa2 Stable Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.
Boardriders Inc. (Quiksilver, DC, Roxy) Caa1 Negative
Premier Brands Group Holdings (Nine West, Jones New York) Caa1 Negative
Belk Inc. Caa1 Negative
Talbots Inc. B3 Negative Obligations rated B are considered speculative and are subject to high credit risk.
Fossil Group Inc. B2 Negative
ABG Intermediate Holdings 2 LLC (Authentic Brands Group) B2 Stable
L Brands Inc. B2 Positive
Calceus Acquisition Inc. (Cole Haan) B2 Negative
Caleres Inc. B1 Negative
Academy B1 Stable

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