Macy’s credit rating reduced to junk status

Department store chain Macy’s had its credit rating reduced to junk status by ratings agency Moody’s.

Moody’s said the group’s performance will remain under pressure as customers continue to rein in spending.

In a statement Moody’s said that Macy’s credit rating is expected to worsen in the next year to a level that will be weak even for the new junk rating. Moody’s said the rating was not the result of “any fundamental issue with its franchise or execution ability”.