×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Sears | Ratings | CreditWatch | Negative

Some Sears' Ratings Put on CreditWatch Negative

Thursday, 29 December 2011 03:19 PM EST

Standard & Poor's Ratings Services is putting some of Sears Holdings Corp.'s ratings on negative CreditWatch after the company announced weaker-than-expected holiday sales and said it would close 100 to 120 of its Sears and Kmart stores.

"We believe that one of the primary issues is that the company has underinvested in its stores base, especially when compared with its peers," the ratings agency said in a statement.

S&P said late Wednesday that its actions were taken on all issue-level ratings on the company's debt and its "B'' long-term corporate credit rating, which is considered non-investment grade, or junk.

The ratings agency said that it's likely that credit protection metrics will deteriorate further in the near term as Sears continues to grapple with softening sales of consumer electronics, home appliances and clothing.

Sears Holdings said Tuesday that revenue at stores open at least a year fell 5.2 percent for the eight weeks ended Dec. 25, a crucial time because of the holiday shopping season. Kmart's layaway program, meant to help cash-strapped customers buy presents by paying for them a little at a time, faltered as Wal-Mart brought back layaway for the holiday season after getting rid of the program in 2006. Sears stores reported softer sales of home appliances, usually a strength.

Shares of the Hoffman Estates, Ill., company slipped 58 cents to $32.75 in afternoon trading.

© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


InvestingAnalysis
Standard Poor's Ratings Services is putting some of Sears Holdings Corp.'s ratings on negative CreditWatch after the company announced weaker-than-expected holiday sales and said it would close 100 to 120 of its Sears and Kmart stores. We believe that one of the primary...
Sears,Ratings,CreditWatch,Negative
227
2011-19-29
Thursday, 29 December 2011 03:19 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved