Macy’s cut to junk by S&P over ‘turnaround doubts’

Bloomberg

Macy’s Inc was cut to junk by S&P Global Ratings, which said the department-store chain falls on the wrong side of changing consumer preferences.
The company’s credit rating was lowered one notch to BB+ from BBB-, S&P said in a statement, citing its “excess stores.” The outlook is stable.
Macy’s shares extended losses after the announcement.
“Pressure is mounting on Macy’s to adapt to the rapidly changing retail environment,” S&P said.
“It’s Polaris strategy, which includes meaningful restructuring and renewed focus on loyalty programmes, private labels, and e-commerce, will be a challenge to implement successfully amid increasing competition from retailers that are ahead in many of these areas.”