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Latest Business News

Fitch Downgrades Toys R Us Debt

Friday, July 22, 2005 5:09:28 PM
By JEFFREY GOLD

NEWARK, N.J. (AP) - Fitch Ratings downgraded $1.8 billion of debt held by Toys R Us Inc. on Friday, a day after the nation's second-largest toy seller was acquired by a private consortium for $6.6 billion.

Fitch lowered the rating for Toys R Us senior unsecured notes to CCC, six steps down from BB, sending it well into the speculative range.

Fitch said the outlook for Toys R Us is negative, asserting that the buyout has left the company with about $6.1 billion of debt that is ahead of the senior unsecured notes for repayment in case of default.


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