Daily News: June 13, 2016

Fitch Rates J.C. Penney’s New $1.69B Term Loan ‘BB+’


Fitch Ratings upgraded the issuer default ratings (IDRs) of J.C. Penney to ‘B+’ from ‘B’ given Fitch’s continued confidence in the company’s ability to generate $950 million to $1 billion in EBITDA and the refinancing of its $2.2 billion term loan due May 2018.

Fitch has assigned ‘BB+/RR1′ ratings to J.C. Penney’s new $1.69 billion senior secured term loan and $500 million of 5.75% senior secured notes, with both due June 2023.

The proceeds will be used to refinance the existing $2.2 billion senior secured term loan due May 2018. The rating outlook is stable.