S&P downgrades Bed Bath & Beyond, says has insufficient funds

S&P Global Ratings lowered its issuer credit rating on Bed Bath & Beyond to "D" from "CC." The downgrade follows the company’s announcement that it received a notice of acceleration and default interest from stemming from its failure to prepay an overadvance and comply with a financial covenant, the agency said in a statement. S&P considers Bed Bath to be in default as it has not repaid the outstanding loans and obligations under its $1.13B asset-based lending and $375M first in, last out facilities that are currently due. Borrowings under these facilities totaled $925M as of November 26, 2022, compared to an available cash and cash equivalent balance of $154M. Bed Bath has insufficient funds available to repay its financial obligations, says S&P, who expects the company will experience a general default and pursue a comprehensive debt restructuring.