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Steinhoff Downgraded Deeper Into Junk at Moody's as Risks Rise

  • Moody’s lowers rating three notches, second cut this month
  • Retailer faces challenges in being able to refinance debt
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Steinhoff Appoints Interim CEO Amid Accounting Scandal

Steinhoff International Holdings NV suffered another blow on Thursday when Moody’s Investor Services downgraded the company’s credit rating deeper into junk.

Moody’s cut Steinhoff’s corporate family ratings by three notches from B1 to Caa1, which is seven levels below investment grade and means the company poses a “very high credit risk,” according to the rating company’s definitions. This is the second multilevel downgrade to hit the furniture and clothing retailer since it disclosed accounting irregularities and the departure of Chief Executive Officer Markus Jooste on Dec. 5.