Tough Trade Weakens Hand of U.K. Retailers as Refinancing Looms
- Retail vulnerable to weaker consumer confidence as pound falls
- Investors may demand premium for refinancing: Old Mutual
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Deteriorating credit outlooks for two U.K. retailers serving different ends of the wealth spectrum show that investors may drive a hard bargain when those companies next tap the debt market.
First S&P Global Ratings downgraded value clothing chain Matalan one notch further into high-yield territory to CCC, citing a proposal to buy back some debt in the secondary market. This could amount to a "selective default," if it purchases debt at a market price that’s below par, S&P said.