New York, NY, July 13--Moody's Investors Service cut its long-term ratings on May Department Stores Co.'s debt, citing the company's higher borrowings after buying 71 department stores for $3.2 billion.
May Department Stores said last month it was buying 62 Marshall Field's department stores, and nine Mervyn's stores from Target Corp. The acquisition is boosting May's outstanding debt by about 75 percent.
Moody's cut May's long-term senior unsecured ratings to "Baa2," the second lowest investment-grade rating, from "Baa1." The ratings agency affirmed May's short-term rating at "Prime-2." The ratings outlook is stable.
Standard & Poor's said last month it may also cut the department store's ratings.
