S&P: Toys 'R' Us unchanged

Standard & Poor's said that Toys 'R' Us Inc.'s (B-/stable) receipt of a notice of default from certain bondholders has no immediate effect on its credit rating or outlook.

In its 8-K filing on July 28, the company said MacKay Shields LLC, an investment adviser that claims to represents more than 25% of the aggregate principal amount of its $200 million 8.75% debentures due in 2021, had sent a notice of default, the agency said.

S&P added that the notice relates to a reporting covenant and a covenant that limits the amount of secured debt the company can issue.

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