Moody’s trims J.C. Penney

Moody’s Investors Service said it downgraded J.C. Penney Co., Inc.’s corporate family rating to B3 from B2.

The agency also downgraded J.C. Penney Corp., Inc.'s senior secured asset-based revolving credit facility to Ba3 from Ba2, its senior secured term loan and senior secured notes to B1 from Ba3, its senior secured second-lien notes to Caa1 from B3 and its senior unsecured notes to Caa2 from Caa1.

The outlook is stable.

The company's SGL-1 rating was affirmed.

"J.C. Penney's decision to aggressively liquidate additional inventory for the remainder of this year will be a significant headwind to its operating performance," Moody's vice president Christina Boni said in a news release.

"New leadership will be critical to improving the company's execution and returning to growth."

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