S&P: Toys 'R' Us on positive watch

Standard & Poor's said it revised the CreditWatch implications on Toys 'R' Us Inc. to positive from negative.

The agency said that the ratings, including the B- corporate credit rating, were initially placed on CreditWatch on May 8, 2007, with negative implications, noting that the revision of the CreditWatch listings follows the company's delayed filing of its 10K and the progress the company has made in improving the operating trends in each of its businesses.

Toys had delayed the filing of its 10K because of material weaknesses in its internal controls over income tax accounting, S&P said, adding that although there continues to be a material weakness in its internal controls over income tax accounting, the company was able to file its 10K, which alleviated the possibility that lenders would declare an event of default.

© 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.