Edcon on review for a downgrade

Published Oct 22, 2014

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MOODY’S Investors Service yesterday placed on review for downgrade Edcon’s key credit ratings, piling pressure on the South African retailer. Moody’s said the review reflected its concern over Edcon’s ability to proactively manage its debt profile and sustain its capital structure. It added that the action stemmed from Edcon’s failure to cut its indebtedness, uncertainty about its financial policy and near-term objectives, and the weakening macro-economic environment. However, Moody’s recognised Edcon’s extended debt maturity profile and did not see a near-term payment default event risk over the next 12 to 18 months. – Staff Reporter

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