Petco Animal Supplies Ratings Removed From Watch
New York City, Standard & Poor’s Ratings Services said today that it lowered its ratings on Petco Animal Supplies Inc., including lowering the corporate credit rating to ‘B’ from ‘BB’. All ratings are removed from CreditWatch, where they were placed with negative implications on July 14, 2006.
On July 14, 2006, Petco accounted that it had entered into a merger agreement with affiliates of Leonard Green and TPG in a transaction valued at approximately $1.9 million. The company has $200 million of rated debt.
“The downgrade reflects a significant increase in financial risk following the LBO of the company,” said Standard & Poor’s credit analyst Robert Lichtenstein.
Bed Bath & Beyond 2Q Profit Up
New York City, Bed Bath & Beyond reported that its second-quarter net income rose to $145.5 million compared with $141.4 million during the year-earlier quarter. Comp-store sales rose 4.8% during the first half of 2006, compared with an increase of 4.4% a year earlier. The company said quarterly sales rose to $1.6 billion from $1.4 billion a year ago.
Read All About It: Shoppers Looking for Discounts
New York City, Bargain-driven shoppers sought out discounters and factory-outlet stores in August, resulting in a poor showing by the department store and specialty store category.
For the full article, “Apparel Retailers and Department Stores See August Sales Slump,” visit the Guest Commentary section on the top of this page.