Mattel Inc.’s senior unsecured bond ratings were downgraded three notches to a “junk” rating of Ba3 from Baa3 at Moody’s Investors Service, which cited the toy maker’s weak performance this year and the lowered profit expectations for the holiday season. Moody’s also cut Mattel’s short-term rating to Not Prime from Prime-3. The rating outlook is stable. Moody’s said it expects the lowered profit outlook to contribute to “much higher than previously expected year-end leverage.” Separately, S&P Global Ratings downgraded on Monday Mattel’s credit rating, which it already had rated “junk,” one notch to BB- from BB, with a negative outlook. Mattel’s stock rose 2.4% in morning trade, but has plunged 44.1% year to date, while the S&P 500 has gained 18.6% so far this year.
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