The mad race to the retail bottom just got more interesting. Moody’s Investors Services downgraded Neiman Marcus Group’s credit rating from “B3” to “B2,” stating that the new rating “acknowledges that th company’s debt levels will increase to about $4.6 billion from $2.7 billion as a result of [Neiman’s] $6 billion leveraged buyout by Ares Management LLC and the Canada Pension Plan Investment Board.”
It’s not entirely clear if Neiman Marcus’ downgrade is more or less impressive than the one JC Penny’s just suffered by the hand of Fitch’s Ratings. Either way, these are inauspicious days for the once proud retail leviathans.