MOODY’S CUTS EDISON RATING
NEW YORK — Moody’s Invester Service lowered Edison Bros. Stores’ prospective rating on a shelf registration to Caa from B2.
The company withdrew the rating because Edison Bros. last week canceled the shelf registration for up to $250 million in debt. As a matter of policy, Moody’s completes all ongoing reviews.
“This downgrade reflects Edison Bros.’ fragile financial condition in the context of an extremely tough operating environment for apparel and shoe specialty stores,” the rating agency said.
Edison’s $75 million secured revolving line of credit and a standstill agreement with creditors “should help it over the short term,” according to Moody’s. Both agreements run through Feb. 29, 1996.
