Steinhoff Bonds Plunge After Moody's Cuts Rating to Junk
- Moody’s warns of further downgrades on liquidity concerns
- Shares stabilize after 80 percent selloff earlier this week
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Steinhoff International Holdings NV bonds extended losses after Moody’s Investors Service slashed the credit rating to junk in the wake of an accounting scandal that’s threatening the survival of the global furniture and clothing retailer.
Moody’s cut its rating by four notches late on Thursday, highlighting “the uncertainties and implications for the company’s liquidity and debt capital structure.” The move comes as South African regulators step up probes that follow a review in Germany, where Steinhoff moved its primary listing two years ago.