Could history be repeated?

Back in 2002, litterally a day after K-Mart was downgraded to Caa3, they were downgraded yet again to Ca!!

Here are the headlines to prove my point:

MOODY'S DOWNGRADES RATINGS OF KMART CORPORATION (SENIOR UNSECURED TO Caa3), RATING REMAINS ON REVIEW FOR FURTHER POSSIBLE DOWNGRADE

Rating Action | 21 Jan 2002

MOODY'S DOWNGRADES RATINGS OF KMART CORPORATION (SENIOR UNSECURED TO Ca); OUTLOOK IS NEGATIVE

Rating Action | 22 Jan 2002

It sure will be interesting as to whether history ends up repeating itself!!

4 replies (most recent on top)

KMart filed for bankruptcy on Jan. 22, 2002. Of course the rating had to drop.

So in default, it means they don't have enough money to continue operating then.

@ezn The ratings Caa3 Ca is one notch above C (or default).

I know this is a "bad" thing, but what does it fully mean?