Macy's Inc. /zigman2/quotes/201854387/composite M -0.14% , Coach-parent Tapestry Inc. /zigman2/quotes/207417762/composite TPR +1.36% and Michael Kors-parent Capri Holdings Ltd. /zigman2/quotes/206301876/composite CPRI +4.03% all became "fallen angels" Wednesday, after Fitch Ratings cut the companies' credit ratings into "junk" territory. A "fallen angel" is a term used for a credit rating that falls from investment grade status to speculative grade, or "junk" status. Fitch cut Macy's long-term issuer default rating (IDR) one notch to BB+ from BBB-, which is Fitch's lowest investment grade rating; cut Capri's IDR to BB+ from BBB-; and lowered Tapestry's IDR by two notches to BB from BBB-. The outlooks on all three ratings remained negative, suggesting further downgrades are a possiblity, given the "significant business interruption from the coronavirus pandemic and the implications of a downturn in discretionary spending that Fitch expects could extend well into 2021." Shares of Macy's fell 7.1% in morning trading, Capri gave up 9.3% and Tapestry dropped 8.3%. The selloff comes as part of a broader stock market selloff, with the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.48% down 3.0%. "Fitch has assumed a scenario where discretionary retailers in the U.S. are essentially closed through mid-May with sales expected to be down 80%-90% despite some sales shifting online, with a slow rate of improvement expected through the summer," Fitch said.