Moody’s upgrades GameStop

Moody’s Investors Service said it upgraded the ratings of GameStop Corp. following the announcement that about 52% of the senior unsecured noteholders agreed to exchange those notes for new secured notes due 2023.

Ratings upgraded include the company’s corporate family rating to B3 from Caa1, probability of default rating to B3-PD from Caa1-PD, senior unsecured rating to Caa1 from Caa2, and senior secured rating to B2 from B3. The company’s speculative grade liquidity rating is unchanged at SGL-3. The outlook is stable.

This concludes the review for upgrade started on June 5, Moody’s said.

“The exchange of more than 50% of the company’s senior unsecured notes improves GameStop’s debt maturity profile as about $216 million of its $415 million of unsecured notes that were due in March 2021 are now due in March 2023,” said Pete Trombetta, a Moody’s assistant vice president, in a press release.

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