S&P Places Sears Holdings (SHLD) on CreditWatch Negative
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Standard & Poor's Ratings Services said today it placed its ratings on Sears Holdings Corp. (Nasdaq: SHLD) on CreditWatch with negative implications following Sears' earnings guidance update that results for the fourth quarter ending Feb. 1, 2014, will be much weaker than our expectations.
"We now expect cash burn for the year to be more than anticipated, at about $1.2 billion in fiscal 2013 (including capital spending, interest expense, and pension contribution)," said credit analyst Ana Lai. "Sale trends remain poor with comp store sales for the quarter to date ending Jan. 6, 2014, declining 7.4% and profitability is now negative in the fourth quarter. We now expect EBITDA for fiscal ending Feb. 1, 2014 in the negative $289 million to $415 million range, compared with our previous expectation of about negative $180 million."
We will monitor Sears' liquidity position and the prospects for both its asset sale plans and an operating turnaround in resolving our CreditWatch listing.
"We now expect cash burn for the year to be more than anticipated, at about $1.2 billion in fiscal 2013 (including capital spending, interest expense, and pension contribution)," said credit analyst Ana Lai. "Sale trends remain poor with comp store sales for the quarter to date ending Jan. 6, 2014, declining 7.4% and profitability is now negative in the fourth quarter. We now expect EBITDA for fiscal ending Feb. 1, 2014 in the negative $289 million to $415 million range, compared with our previous expectation of about negative $180 million."
We will monitor Sears' liquidity position and the prospects for both its asset sale plans and an operating turnaround in resolving our CreditWatch listing.
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