Macy’s, Renault Add to Fallen Angel Fear With Downgrades to Junk

Companies cut by different credit raters to speculative grade
Downgrades follow Kraft Heinz cut last week on weak earnings

NEW YORK - FEBRUARY 28: Pedestrians are reflected in a Macy's window February 28, 2005 in New York City. Federated Department Stores Inc. is buying rival May Department Stores Co. for $11 billion in cash and stock in a deal that would enable them to compete against Wal-Mart Stores Inc. as well as upscale retailers. (Photo by Stephen Chernin/Getty Images)Photographer: Stephen Chernin/Getty Images North America

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By Molly Smith

February 18, 2020 at 8:13 PM UTC

This article is for subscribers only.

The credit-rating downgrades of Macy’s Inc. and Renault SA to junk status are rekindling fears among investors of a potential uptick in so-called fallen angels after a run of relative tranquility in the U.S. corporate bond market.

The American retailer and French carmaker each lost an investment-grade rating Tuesday, affecting billions of dollars of debt. They follow Kraft Heinz Co., the iconic U.S. packaged-food company, which was downgraded to junk by two credit raters on Friday as its turnaround shows little signs of progress.