What's a Penney's Worth?

Credit ratings on J.C. Penney (Plano, Texas) were reduced by Standard & Poor's, putting the debt below investment grade. The ratings agency said a turnaround would take longer than forecast.

The ratings were dropped one level, to BB+ from BBB-. Penney has about $5.2 billion in debt, while its Eckerd drugstore chain has about $200 million in receivables not counted on the company's balance sheet.

S&P said the sluggish economy would make it harder for the retailer to improve sales and profits this year after a disappointing first quarter.