Moody's lowers RadioShack

Moody's Investors Service said it downgraded RadioShack Corp.'s corporate family and probability of default ratings to B1 from Ba2.

In addition, the ratings for RadioShack's senior unsecured convertible notes and senior unsecured notes were downgraded to B2 from Ba3.

The outlook remains negative.

RadioShack's SGL-1 speculative grade liquidity rating was affirmed.

"The negative trend in RadioShack's margins due to its top line being increasingly skewed toward low margin and highly competitive mobility business and the proliferation of low margin smart phones cannibalizing sales from its consumer electronics product line continues to cause deterioration in credit metrics," Moody's senior analyst Mickey Chadha said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.