Standard & Poor’s Ratings Services lowered Sears Holding Corp.’s (Hoffman Estates, Ill.) corporate credit rating one notch in junk status to a “B” to a “B+,” reports the Associated Press.
The downgrade comes from stiff department store competition and softer consumer demand. The company, which owns Sears, Roebuck & Co. and Kmart, saw losses increase as a result of declines in Sears Canada, consumer electronics and Kmart apparel, as well as charges for pension expense.
Net losses for the third quarter ended October 29 were $421 million compared with $218 million in the same quarter last year. The domestic same-store sales decrease included a comp decline of 0.7 percent at Sears stores and a drop of 0.9 percent at Kmart. Sears Canada’s same-store sales fell 7.8 percent compared with last year’s third quarter.