Fitch rates Kohl's notes BBB+

Fitch Ratings said it assigned a rating of BBB+ to Kohl's Corp.'s proposed issue of $300 million 10-year senior unsecured notes.

The new notes are expected to be used for general corporate purposes, which may include share repurchases, Fitch said.

Kohl's has a long-term issuer default rating of BBB+, $1 billion bank credit facility rating of BBB+ and senior unsecured notes and debentures rating of BBB+.

The outlook is stable.

The ratings reflect the company's stable market position as the third-largest department store retailer in the United States, industry-leading operating margins, convenient off-mall store format and good growth in higher-margined private and exclusive brands, Fitch said.

While Kohl's market share has been stable for the past few years, the agency said it remains concerned about softness in the company's comparable store sales trends, which have been weak since late 2011.

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