British department store Debenhams has suffered a downgrade by credit ratings agency Moody's.
The downgrade will make it harder for the embattled departments to borrow money.
It comes after three profit warnings from Debenhams this year alone, with the credit rating now sitting at B2.
The 'high risk' rating means it is more likely to default on its debts.
Debenhams launched into the Australian market in 2017, following a partnership with Harris Scarfe owner Pepkor.
The 3600 square metre store, in the basement of the St Collins Lane mall in Collins Street, is the first of its type and is being watched closely by the UK head office.
Debenhams has not ruled out selling assets to strengthen finances.
This month, it put a price of up to AUD $443 million on its Danish department store chain Magasin du Nord.
In its latest profit warning in June, Debenhams said it expected to make annual profits of up to AUD $70 million, down from over AUD $265 million five years ago.