SHLD - debt downgraded
Chinese pants downgraded as well
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S&P Lowers Sears Debt Ratings
Wednesday December 5, 3:13 pm ET
S&P Lowers Sears' Long- and Short-Term Credit Ratings Due to Expectations of Weak Results
NEW YORK (AP) -- Standard & Poor's Ratings Services lowered its credit ratings for Sears Holding Corp. and related entities on Wednesday, citing "very disappointing" third-quarter results that S&P expects will not improve any time soon.
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S&P lowered Sears' corporate-credit rating to "BB" from "BB+," both of which are junk ratings, and its bank loan rating to "BBB-" from "BBB," both of which are investment-grade ratings. It also lowered senior unsecured debt ratings for Sears Roebuck Acceptance Corp., Sears Canada Inc. and Sears DC Corp. to "BB" from "BB+" and its short-term and CP ratings on Sears Roebuck Acceptance Corp. to "B-2" from "B-1."
S&P's outlook for the company is stable.
"The downgrade follows Sears' announcement of very disappointing results for the third quarter of 2007 and our expectation that poor trends will continue well into 2008 given the economic environment," S&P credit analyst Gerald Hirschberg said in a statement. He also cited diminished liquidity due to Sears' share buyback program.
Sears shares rose $1.56 to $111.18 in afternoon trading.
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U.S. CPSC recalls TKS children's pants sold by Sears
Thu Dec 6, 2007 8:59am EST
Dec 6 (Reuters) - U.S. Consumer Product Safety Commission said TKS-branded children's pants sold by retailer Sears Holding (SHLD.O: Quote, Profile, Research) were recalled due to an entrapment hazard.
About 6,100 pairs, manufactured in China, were recalled the CPSC said in statement.
No injuries or incidents were reported. (Reporting by Vikram Subhedar in Bangalore; Editing by Amitha Rajan) |
