S&P cut its ratings on Macy’s to BBB, as competition from internet retailers digs into the department store chain’s sales.
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America has a debt problem, but it's not what you think.You might think big U.S. companies, if anything, have been too conservative with their finances. Of the $1.8 trillion in cash that's sitting in U.S. corporate accounts, half of it belongs to just 25 of the 2,000 companies tracked by S&P Global Ratings. Outside of Apple, Google and the rest of the corporate 1 percent, cash has been falling over the last two years even as debt has been rising. The company's debt, net of cash, has risen over the past three years.Chang of S&P Global says his company doesn't break out the numbers for the 1 percent versus the 99 percent, but doesn't think the ratios for the bulk of companies have gotten alarmingly worse.Chris Gootkind, director of credit research at fund company Loomis Sayles, says debt at many companies is still at a "reasonable" level, and thinks investors in corporate debt have gotten things largely right. The largest owner of radio stations in the U.S., iHeartMedia, has paid off parts of its $21 billion debt several times since the financial crisis, but elected to do so with money raised from new loans.
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