Why Bed Bath & Beyond Stock Was a Stinker Today
A day after it popped on news of a debt-exchange offer, Bed Bath & Beyond (NASDAQ: BBBY) was pushed down again. An influential credit rating agency doesn't like the sound of that offer and expressed this with a downgrade of the retailer's debt. As a result, the stock's price tumbled by more than 5%.
Ever-influential rater S&P Global was the culprit, reducing its estimation for Bed Bath & Beyond's debt to CC, outlook negative. That's one notch down from S&P's previous CCC, which in turn was a reduction made as recently as late August.
According to S&P's ratings guide, CC is a "speculative grade," indicating that a business's debt is "Highly vulnerable; default has not yet occurred, but is expected to be a virtual certainty." Even with long-shot companies like Bed Bath & Beyond, that's an ominous prospect.
Source Fool.com
