L Brands downgraded to Ba2 at Moody's, placed on review for further downgrade
Moody's Investors Service downgraded all ratings of L Brands, including its Corporate Family Rating to Ba2 from Ba1 and its Probability of Default Rating to Ba2-PD from Ba1-PD. The company's existing senior unsecured guaranteed notes were also downgraded to Ba2 from Ba1 and the senior unsecured unguaranteed notes were downgraded to B1 from Ba2. The Speculative Grade Liquidity Rating was lowered to SGL-2 from SGL-1. Ratings were placed on review for further downgrade."The downgrade of L Brands reflects the continued negative comparable store sales and operating margin compression at Victoria's Secret. Although Bath & Body Works continues to outperform, the turnaround at Victoria's Secret remains in early stages as competitive pressures remain intense," says Moody's Vice President, Christina Boni.