BJ's Wholesale Club Shares Drop 5.2% After Fitch Assigns First-Time 'BBB' Credit Rating
BJ is trading near its 52-week low of $86.68 (0.6% above the low) on light trading volume (0.4× avg).
Summary
Fitch Ratings assigned BJ's Wholesale Club a first-time Long Term Issuer Default Rating of 'BBB' with a Stable Outlook, an investment-grade rating. Despite the positive nature of an investment-grade rating, the company's shares fell 5.2% on the news, indicating a negative market reaction. This credit rating is a significant development for the company's financial profile and access to capital. This news follows the company's strong first-quarter earnings report earlier today.
At the time of this announcement, BJ was trading at $87.22 on NYSE in the Trade & Services sector, with a market capitalization of approximately $11.1B. The 52-week trading range was $86.68 to $120.08. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: BayStreet.