Macy’s Bond Sale Well Received

Investor demand signals retailer’s escape from junk status just a start.

One day after Macy’s Inc. regained its third investment-grade rating, investors are already betting on further upgrades for the retailer.

The second-largest U.S. department-store chain issued $800 million of bonds yesterday in its first offering since June 2008. Its $550 million sale of 10-year notes, rated Baa3 by Moody’s Investors Service after a Jan. 9 upgrade and BBB- by Standard & Poor’s and Fitch Ratings, yielded 200 basis points more than similar maturity Treasuries, within the average 226 basis-point spread on A-rated corporate bonds.

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