Sears Credit Rating Downgraded: Duff & Phelps...
From Times Staff and Wire Reports
Sears Credit Rating Downgraded: Duff & Phelps Inc. said it downgraded its credit rating of Sears, Roebuck and Co.’s debt securities because of uncertainty over the success of Sears’ new retailing strategy. Duff & Phelps downgraded Sears’ senior debt, acceptance senior debt and Discover Card credit senior debt to AA-minus from AA. At the same time, the credit-rating company reaffirmed the rating that it gave Sears’ commercial paper, Duff 1-plus. The downgrading affects about $2 billion of debt securities. Duff & Phelps said the downgrading reflected the “increased risks and earnings volatility” of Sears’ retail operations after its switch last spring to a strategy of “everyday low pricing.”
