Chain Store Age
Retailers currently on Fitch’s ‘Top Loans of Concern’ list, which indicates a significant risk of default, include Neiman Marcus Group, Toms Shoes, Indra Holdings, Iconix Brand Group, NYDJ Apparel and Charlotte Russe. Retail accounts for 18% of the ‘Top Loans of Concern’ volume, the most of any sector. The 2018 default rate for U.S. retail leveraged loans was 4.7%, above the overall 1.75% rate, with $3 billion of volume.
Fitch’s ‘Top Loans of Concern’ list includes debt that has deeply speculative-grade ratings and discounted secondary market bid levels relative to par. Adverse market information or events and insight from sector analysts are also factors. . . . more