S&P drops Best Buy

Standard & Poor's said it lowered its ratings on Best Buy Co. Inc., including the corporate credit rating to BBB- from BBB.

The outlook is stable.

The agency said that the rating change reflects its belief that the company will be more challenged than previously expected by the current weak economic environment in the United States and that credit metrics will deteriorate more than it had originally projected as a result of a deepening spending pull-back by consumers.

Best Buy recently announced worse-than-expected same-store sales for October, down 7.6%, the agency said, noting that it now expects same-store sales to be down in the high single digits for the fourth quarter of 2008.

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