Moody’s withdraws all its ratings on Edcon
Moody’s says Edcon’s capital restructuring will short investors on what the company had initially promised them
Moody’s Investors Service has joined other ratings agencies and withdrawn all of its ratings on Edcon. Earlier in February, S&P Global also announced that it had withdrawn its ratings on Edcon, after downgrading the group’s long-term corporate credit rating to default. In a statement released on Monday, Moody’s said Edcon’s capital restructuring would short investors on what the company had initially promised them. “Edcon announced that it had finalised the changes to the group’s organisational structure and restructuring of its debt obligations, effective February 1. The capital restructuring, under Moody’s definitions, is considered a distressed exchange and an effective default on the company’s rated debt instruments as it represents a diminished financial obligation relative to the previous agreements,” Moody’s said.