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GameStop upgraded as it raises cash for turnaround and pays off debt


Dive Brief:
S&P Global Ratings upgraded GameStop s corporate credit rating, from B- to B, and gave the company a stable outlook based on our expectation for better operating performance and lower leverage levels, analysts said in a release.
The upgrade comes shortly after GameStop raised around $550 million through an issue of new stock in the company.
The gaming retailer used a chunk of that new cash to redeem all the long-term debt on its balance sheet, consisting of $216.4 million in senior notes, two years early. The remaining cash is there to help fuel GameStop s transformation efforts.
Dive Insight:
Even the most fervent GameStop bulls would probably have a tough time making an economic case that GameStop s stock would be worth nearly $350, as it traded for at one point during a raucous period of stock-buying earlier this year. And indeed, the retailer s stock hasn t reached those levels since, though it still trades at more than $150 a price nearly 1 ....

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