S&P cuts Belk

S&P said it lowered Belk Inc. and its first-lien term loan to CC from CCC.

“The downgrade follows Belk’s announcement that it intends to restructure its debt. Its proposal includes reducing overall funded debt by about $450 million, while simultaneously infusing an additional $225 million of new capital into the business from some of its lenders and its private equity sponsor, Sycamore Partners LLP,” S&P said in a press release.

If completed, the agency said it would view the proposed transaction as equivalent to default because lenders will get less than originally promised.

The outlook is negative.

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