Moody’s (New York) has officially downgraded Westlake Village, Calif.-based Guitar Center’s corporate family rating from B2 to B3 related to concerns regarding the company’s “significant” and “relatively near-term” debt maturities, S&P Global Market Intelligence (New York) reported in a release.
Guitar Center is one of the largest music product retailers in the U.S. About 65 percent of the company’s long-term debt will mature next year, leaving it with only 18 months to refinance its debt obligations, reports S&P Global.
S&P Global also notes that, “Guitar Center’s $375 million asset-based credit facility (not-rated) matures on April 2, 2019. The company’s $615 million of 6.5% senior secured first-lien notes mature on April 15, 2019. Its $325 million of 9.625% senior unsecured notes do not mature until 2020.”
Moody’s predicts the company will be stable when this time comes.