S&P ups Sears Holdings outlook to stable

Standard & Poor's said it revised its outlook on Sears Holdings Corp. to stable from negative.

All ratings, including the BB+ corporate credit rating and the B-1 short-term rating for Sears Roebuck Acceptance Corp., are affirmed, the agency said, noting that the outlook revision reflects its assessment that the merger of Kmart and Sears has been completed without major disruption and that same-store sales at Kmart have generally stabilized, although Sears' same-store sales are still declining significantly.

S&P noted that the ratings on Sears Holdings reflect the relatively high business risk associated with Sears department stores and Kmart discount department stores and our expectation that both concepts will continue to be challenged to improve store productivity and profitability, partly offset by a currently strong balance sheet for the rating.

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