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Moody’s cuts General Shopping
Moody's Investors Service said it downgraded the senior unsecured rating of General Shopping Finance Ltd. to Caa2 from Caa1 and the subordinated debt rating of General Shopping Investments Ltd. to Ca from Caa3.
The agency also downgraded the global scale foreign currency corporate family rating of General Shopping e Outlets do Brasil SA to Caa2 from Caa1.
The outlook was revised to stable from negative.
“The downgrade reflects General Shopping e Outlets do Brasil SA's (formerly known as General Shopping do Brasil SA; GSB) reduced portfolio size and continued earnings erosion as a result of asset sales, rental revenue decline, and high financing costs associated with the heavy foreign debt load on its already pressured balance sheet,” the agency said in a news release.
“Additionally, GSB's access to capital remains limited to assets sales to replenish its cash balance, as the company's operations generate negative cash flow and do not have committed lines of credit.”
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