Moody's Downgrades Toys "R" Us' PDR to D-PD Following Bankruptcy Filing; Will Withdraw Ratings
Global Credit Research - 19 Sep 2017
New York, September 19, 2017 -- Moody's Investors Service ("Moody's") today downgraded Toys "R" Us, Inc.'s ("Toys") Probability of Default Rating (PDR) to D-PD from B3-PD. The downgrade was prompted by Toys' September 18, 2017 announcement that it had initiated Chapter 11 bankruptcy proceedings. The outlook is stable.
RATINGS RATIONALE
"Moody's views this as a case of reasonable business/bad balance sheet, with the untenable capital strucuture ultimately too much to bear," stated Moody's Vice President Charlie O'Shea. "The overall business is fundamentally sound, and it is our expectation that overall recovery will be well-above the norm."
Subsequent to today's actions, Moody's will withdraw the ratings due to Toys' bankruptcy filing. Please refer to the Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website,
www.moodys.com.
Downgrades:
..Issuer: Toys ''R'' Us, Inc.
.... Probability of Default Rating, Downgraded to D-PD from B3-PD