Standard & Poor's Ratings Services placed its ratings, including the 'BBB+' corporate credit rating, on Cincinnati, Ohio-based Macy's Inc. (NYSE: M) on CreditWatch with negative implications.

"The CreditWatch placement follows the company's announcement that same-store sales declined 4.7% in the months of November and December 2015 combined. The company also lowered its 2015 earnings guidance for the second time since early November," said credit analyst Helena Song.

The negative CreditWatch placement indicates at least a 50% chance that we could lower the ratings at least one notch in the next three months. Meaningful industry headwinds could more than offset the company's various operating initiatives on a sustained basis and affect both the company's competitive standing and credit metrics. We believe apparel industry trends will remain soft in 2016, given the heightened industry competition, declining mall traffic, and the shifting trend in consumer spending away from department stores to online and off-price retailers and also toward spending on restaurants, services, etc. We will evaluate any shifts in the company's financial policy and its evolving real estate strategy.

We expect to resolve the CreditWatch placement within the next few months, after evaluating the ongoing weak operating trends, financial policy (inclusive of its real-estate strategy), and financial impact of its cost initiatives.