BJ’s Wholesale Club (NYSE: BJ) shares fell sharply Friday, on word that Fitch Ratings has assigned a first-time Long Term Issuer Default Rating of ‘BBB’ to the company. Fitch has also assigned BBB+ ratings to the company’s ABL revolving credit facility and secured term loan due 2029. The ratings carry a Stable Outlook.
"Fitch’s investment-grade ratings reflect BJ’s continued growth and commitment to financial discipline,” said Chief Financial Officer Laura Felice. “We are proud of the progress we've made in growing our business and strengthening our balance sheet as we deliver unbeatable value and convenience to our more than eight million members in 22 states."
This morning’s news release goes on to say Fitch’s rating reflects BJ’s strong positioning in the growing U.S. warehouse club sector, a loyal membership with 90% tenured renewal rate and consistent growth in comparable store sales and EBITDA. The rating also reflects the company’s positive cash generation and modest EBITDAR leverage.
BJ’s Wholesale is a leading operator of membership warehouse clubs focused on delivering significant value to its members and serving a shared purpose: “We take care of the families who depend on us.”
BJ shares began the last session before Memorial Day down $4.93, or 5.2%, to $89.48.
