Philip Boroff of Bloomberg is reporting that Moody's is now reviewing Sothebys debt rating (currently below investment grade and considered junk). About a month ago I reported that Standard and Poors had reduced Sotheby's debt rating (click HERE to read). The Bloomberg piece is short, so I will post the complete article. On the other hand, Sotheby's stock has risen 50% since the beginning of this year, to $13.56 before the Moody's news, but still far below its high in 2007 of %57.00.
June 17 (Bloomberg) -- Moody’s Investors Service, which already rates Sotheby’s bonds below investment grade, or junk, said it placed its debt on review for a possible downgrade.
The review “reflects Moody’s concern that the duration and depth of the current cyclical downturn in the international auction market may be more severe” than originally expected, Moody’s said in a press release.
Moody’s current rating for Sotheby’s senior unsecured notes is Ba3, the third-highest speculative-grade rating. Standard & Poor’s Rating Services downgraded Sotheby’s debt last month.
Before the announcement, Sotheby’s shares rose 13 cents to $13.56 in New York Stock Exchange trading as of 4:15 p.m. While the shares are up 53 percent this year, they’re down from their closing peak of $57.64, reached on Oct. 10, 2007.
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