Fitch Rates Macy's $650MM Senior Unsecured Notes 'BBB-'; Outlook Stable

The rating reflects Macy's strong operating margins relative to its industry peers, slow store expansion and relatively low reinvestment needs in the existing store base that enables the company to generate strong free cash flow. This is balanced against the highly competitive and challenging operating environment and weakness in the top line. In the near to medium term, Fitch anticipates leverage ratios to increase from current levels as Macy's operating performance remains pressured due to the expected softness in comparable store sales.

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SOURCE: Fitch Ratings

Fitch Ratings Monica Aggarwal, CFA, +1-212-908-0282 (New York) Tiffany Co, +1-312-368-3185 (Chicago) Brian Bertsch, +1-212-908-0549 (Media Relations, New York)