A day after reporting disappointing earnings, Standard & Poors lowered its rating on Under Dog’s $600 million in unsecured bonds to BBB-, one level below investment grade, saying that they expect the company’s sales to grow at just 10% going forward because of competitive pressure and rising costs that will squeeze margins. Moody’s affirmed its Baa2 rating, two levels above junk status, but lowered the outlook to negative. The bonds are now trading at 88.102, down from 92.299 before the earnings release.

The debt was taken on to refinance the Connected Fitness acquisitions, which totaled some $710 million ... Log in to view full article.