Sears Holding (SHLD) Credit Rating Cut Deeper Into Junk at S&P
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Overnight, Standard & Poor's downgraded Sears Holdings' (Nasdaq: SHLD) corporate credit rating two notches to 'CCC+' from 'B.' The rating firm has a negative outlook on the rating.
"The corporate credit rating reflects our projection that Sears' EBITDA will be negative in 2012, given our expectations for continued sales and margin pressure," said Standard & Poor's credit analyst Ana Lai. She added, "We further expect that liquidity could be constrained in 2013 absent a turnaround or substantial asset sales to fund operating losses."
S&P expects EITDA in fiscal 2011 (ending Jan. 31, 2012) to be about $300 million compared with $1.3 billion in fiscal 2010
"The corporate credit rating reflects our projection that Sears' EBITDA will be negative in 2012, given our expectations for continued sales and margin pressure," said Standard & Poor's credit analyst Ana Lai. She added, "We further expect that liquidity could be constrained in 2013 absent a turnaround or substantial asset sales to fund operating losses."
S&P expects EITDA in fiscal 2011 (ending Jan. 31, 2012) to be about $300 million compared with $1.3 billion in fiscal 2010
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