Embattled Steinhoff’s woes deepened on Friday when Moody’s Investor Service hit out at its board and slashed the group’s credit rating by four notches to junk. The group’s ratings were also put under review for further downgrade.
Moody’s said its decision reflects the uncertainties and implications for the company’s liquidity and debt capital structure arising from fraud allegations against the group.
“Given that allegation of accounting irregularities were raised and rebutted in August and again in November calls into question the quality of oversight and governance at Steinhoff.
“Should further details of the accounting irregularities put additional pressure on Steinhoff’s financial condition, this could lead to further downward pressure on the ratings,” Moody’s said.