Wednesday, April 1, 2009

Macy's, Meet Junk

Moody's is back to its wicked stop-the-stupid-rally ways by junking Macy's. Moody's cut the retailer's unsecured debt rating from Baa3 to Ba2.
"The downgrade reflects the sharp deterioration in Macy's credit metrics to levels that are more appropriate for a mid Ba rating" stated Maggie Taylor, Vice President & Senior Credit Officer. "The downgrade also reflects Moody's expectation that Macy's operating performance will continue to be pressured given the current challenging consumer spending environment." Given this, Moody's expects Macy's credit metrics will deteriorate further over the next twelve months to levels that will be weak even for the new Ba2 rating."
Brave investors everywhere disagree with Moody's assessment, and are lapping up every share of M stock they can get their greedy little hands on. Credit deterioration, pension underfunding, declining cash, dividend cuts, dropping earnings: those are for pussies - bring on the paaaaain. It is amazing what a 0.5% beat on otherwise record low ISM readings, together with a few extra cars sold by a soon to be bankrupt company can do to investor sentiment. Sphere: Related Content
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Anonymous said...

Fight Club's Tyler Durden: "Man, I see in fight club the strongest and smartest men who've ever lived. I see all this potential, and I see squandering. God damn it, an entire generation pumping gas, waiting tables; slaves with white collars. Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don't need. We're the middle children of history, man. No purpose or place. We have no Great War. No Great Depression. Our Great War's a spiritual war... our Great Depression is our lives. We've all been raised on television to believe that one day we'd all be millionaires, and movie gods, and rock stars. But we won't. And we're slowly learning that fact. And we're very, very pissed off."

Anonymous said...

Speaking of smashing, I'm going to assume that an out-of-court bankruptcy would qualify as a credit event. Are we going to see another multi-billion dollar bailout on GM/Chrysler CDSs?


Anonymous said...

Are you going to post every insignificant bankrupcy that scrolls across your Bloomberg screen??

Desperate for web content or 'Sounding Call for the Jews' to consolidate their shekels?

Yea, god bless the US of Jew.