S&P downgrades TJX

S&P said it downgraded all its long-term ratings for TJX Cos. Inc. to from A+ citing the “swift and severe” drop in consumer spending.

“In response to the coronavirus outbreak, TJX has announced it will temporarily close all of its stores for two weeks. We believe closures could be extended for more than a month given the increasingly drastic actions governments are taking to quell the rapid rise in new Covid-19 cases, resulting in temporarily elevated levels of cash burn,” said S&P in a press release.

For fiscal 2021, S&P said it now forecasts a greater than 20% full-year revenue decline and a sharp erosion in margins, causing credit metrics to weaken significantly this year.

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