BJ's Wholesale upgraded at Moody's after $625 million debt repayment

BJ's Wholesale Club Holdings Inc.'s credit was upgraded to B1 from B3 at Moody's after the company used the proceeds from its "successful" IPO to repay a $625 million second lien term loan. BJ's began trading on June 28, with shares surging 23%. ""he prior rating was hamstrung by high leverage emanating from the aggressive sponsor-driven financial policy, which this significant repayment largely alleviates," wrote Charlie O'Shea, Moody's vice president. "BJ's operating performance continues its steady favorable trend, which we expect to continue." BJ's shares are down 0.8% in Friday trading and down 0.3% for the month to date. The S&P 500 index is up 1.6% for the month so far.