Why Bed Bath & Beyond Dropped 7% Thursday Afternoon
Shares of Bed Bath & Beyond Inc. (NASDAQ: BBBY), an omnichannel retailer of home furnishings and assorted products, are down over 7% Thursday afternoon after Moody's Investors Service downgraded Bed Bath & Beyond Inc.'s senior unsecured rating.
Moody's downgraded the retailer two levels from Baa3 to Ba2, with a stable outlook, which completes the review of Bed Bath & Beyond that began Oct. 28, 2019. "The two notch downgrade reflects the acceleration of declines in same store sales and further erosion of EBITDA that will cause debt/EBITDA and EBIT/interest metrics to fall below previous estimates," stated Moody's analyst Peggy Holloway, in a press release.
"The transformation will likely take another two years to fully implement and is occurring at a time of softness in the homewares sector, and so Bed Bath remains vulnerable to continued market share loss to competitors who have adjusted more quickly to the changing retail environment," added Holloway.
Source Fool.com
