Guitar center bonds downgraded on best buy roll out.(FOREFRONT)

Music Trades, September, 2008

> WHILE THE INDUSTRY debates the impact of the Best Buy rollout, Moody's Investors Service appears poised to reach a conclusion. The company, which rates the credit-worthiness of bonds, is reviewing Guitar Center's bonds for a possible downgrade. In a prepared statement, the company said, "The review for possible downgrade is prompted by the company's sales and earnings performance falling below Moody's expectations and the high likelihood that earnings will remain pressured given increased competition from Best Buy's entrance into ...