Fitch cuts Federated credit ratings |
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Wed, 28 Feb 2007 22:46
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CHICAGO (AP) - Fitch Ratings said Wednesday it downgraded Federated Department Stores Inc.'s issuer default rating to 'BBB' from 'BBB+,' citing the company's decision to buyback an additional $4 billion in stock.In addition, the credit rating agency downgraded the issuer default rating for Federated's operating subsidiary, Federated Retail Holdings Inc. and cut the rating for the subsidiary's bank facility and the company's senior notes rating. All the downgrades were to 'BBB' from 'BBB+.' About $8.5 billion of debt is affected by the downgrades.Fitch affirmed the subsidiary's 'F2' commercial paper rating.The downgrades reflect Federated management's more aggressive financial posture, Fitch said, while its decision to give the company a negative rating outlook acknowledges the challenge of reviving the company's former May department stores.Federated shares rose $1.31, or 3 percent, to close at $44.66 on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Moody's cuts Federated ratings 