J.C. Penney & Co. (NYSE:JCP) sees its Issuer Default Ratings and that of J.C. Penney Corporation, Inc. downgraded at Fitch Ratings to B from BB-, with the rating outlook Negative. This downgrade reflects a dismal third quarter report in which sales declines continued to quicken, along with Fitch’s worries that top line will likely worsen during the critical shopping season ahead when promotional events tend to accelerate traffic. Further, for next year, there exists a lack of visibility in terms of the firm’s capacity to stabilize its core business, which currently comprises 90 percent of its presence. Worse, it is a question as to whether the new shops and merchandise offering can outweigh any continued decreases in the ongoing business in the second half of next year. Shares closed down 3.17 percent on the day at $17.40, having traded in a 52-week range of $19.06 to $43.18.
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LPL Investment Holdings (NASDAQ:LPLA) reported via a regulatory filing that it has been notified that Hellman & Friedman Capital Partners funds will distribute a total number of 8,088,055 shares of its common stock previously owned by them to their respective limited partners. Subsequent to the distribution, the H&F funds will remain the holder of 18,872,128 shares of LPL’s common stock. Shares closed down 6.4 percent on the day at $26.31 and have been traded in a 52-week range of $24.12 to $38.94.
MBIA’s (NYSE:MBI) outstanding 5.70 percent Senior Notes due 2034 have received a tender offer by Bank of America Corporation (NYSE:BAC) which said that its affiliates are party to certain credit default swap transactions for which MBIA Insurance, a subsidiary of MBIA, has provided credit support amounting to a notional value of $6.15 billion, against which BofA has established credit valuation adjustments for a sizable portion. Further, Bank of America believes that, “if the MBIA Consent Solicitation is successful, the risk of MBIA Insurance Corporation being placed in rehabilitation or liquidation will increase, which would jeopardize all policyholder claims, including Bank of America’s claims under these transactions.” On November 7th, when MBIA reported its consent solicitation, it proposed to substitute one of its subsidiaries, National Public Finance Guarantee Corporation, in the definitions of Restricted Subsidiary in its 1990 Indenture and Principal Subsidiaries in its 2004 Indenture. For its part, MBIA said in the press release in regards to the consent solicitation that, “the Company believes the proposed amendments will be beneficial to both the Company and its noteholders.” Shares closed down 19.02 percent on the day at $6.81, but have traded in a 52-week range of $7.10 to $13.50.
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