Macy’s issuer rating was affirmed at Ba1, but its secured bonds were downgraded to Ba2 from Baa3 by Moody’s. This comes on the back of “governance considerations”, the rating agency said. Macy’s Retail Holding’s completed an offer to redeem its senior secured notes and upon completion, it has resulted in the release of the collateral securing the remaining notes. Therefore the remaining bonds are now unsecured and rank pari passu with its other unsecured notes. On the issuer level, Moody’s notes that Macy’s continues to focus on debt reduction, maintaining low leverage and has improved its operating performance. Macy’s also has solid liquidity of $1.7bn in cash at the end of fiscal 2021.

Macy’s 4.5% 2034s are down 1.4 points 84.7, yielding 6.26%.

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