Kohl’s stock slips as Moody’s reassess credit rating

Sep. 20, 2022 2:53 PM ETKohl's Corporation (KSS)By: Kevin P. Curran, SA News Editor7 Comments

Kohl"s Department Stores Receives Unsolicited Bid From Hedge Fund Starboard Value LP

Justin Sullivan

Kohl’s Corporation (NYSE:KSS) stock slid 3.92% on Tuesday after Moody’s Corporation placed its Baa2 senior unsecured rating on review for downgrade.

The ratings agency said that the potential downgrade is a result of “revenue and operating performance is expected to lag its peers when compared to 2019 levels” and the expectation of continued problems with excess inventories and margins.

“Moody's believes that the company's competitive profile remains pressured despite its major initiatives to attract new customers which could temper long term growth,” the ratings agency said. “The action also considers that Kohl's leverage is elevated above the level appropriate for a Baa2 rating.”

The ratings agency note also frowned upon the $500M accelerated share repurchase program being pursued by the retailer despite cash flow problems.

The company’s credit rating was cut to junk by S&P on Friday due to “secular headwinds”.

Read more on recent offers made by private equity firms to purchase Kohl’s real estate.

Recommended For You

Comments (7)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.