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Fitch Downgrades Sears Holdings IDR to 'CCC'; Outlook Negative
January 14th, 2012
Fitch Ratings has downgraded its long-term Issuer Default Ratings (IDR) on Sears Holdings Corporation (Holdings) and its various subsidiary entities to 'CCC' from 'B'. The ratings on various tranches of debt have also been downgraded by a notch. The Rating Outlook is Negative. A full rating list is shown below.
The downgrades reflect the continued deterioration in EBITDA on worse than expected top-line growth, with both Kmart and Sears running negative mid-single-digit comps in the fourth quarter. EBITDA for 2011 is expected to be below $400 million versus $1.5 billion in 2010, based on Sears' update provided through Dec. 25, 2011. As a result, credit metrics continue to...
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Source: Investment Weekly News (2012-01-14)