S&P keeps Debenhams view negative

S&P said it affirmed its B long-term issuer credit rating on Debenhams plc. The outlook remains negative.

At the same time, S&P affirmed its B long-term issue rating on the £225 million senior unsecured notes (of which £200 million remain outstanding), in line with the issuer credit rating. The recovery rating on these notes is unchanged at 3, reflecting an expectation of average recovery (50%-70%; rounded estimate: 60%) in the event of default.

Debenhams recently reiterated its liquidity position and earnings guidance for the financial year ending Sept. 1, 2018 (FY2018), while confirming it has no immediate plans to close stores, despite challenging market conditions, S&P said.

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