Standard & Poor’s downgraded Saks Global to “selective default” from “CC”, citing liquidity concerns and overdue vendor payments. The move follows the completion of a debt restructuring, which included a $600 million injection from lenders. S&P expects Saks to use the funds to rebuild inventory and pay vendors, despite a negative impact on cash flow.

The downgrade is seen as a technicality and not expected to impact Saks’ operations or financing ability. S&P plans to reevaluate the company’s capital structure and strategic initiatives, potentially raising the rating in the near future. Saks remains confident in its ability to deliver for stakeholders, emphasizing the importance of the recent financing transaction.

Saks Global anticipates improving its liquidity position through synergies from the Neiman Marcus Group acquisition, aiming to reduce annual costs by $600 million in the coming years. The company’s spokesperson clarified that the rating actions apply to specific notes issued in December 2024, not to new notes issued in August 2025. S&P expects to upgrade the rating as more information becomes available about the company’s capital structure and strategic plans.

Read more at Yahoo Finance: Standard & Poor’s Downgrades Saks Global, Moots Potential Reappraisal