S&P: Saks unchanged

Standard & Poor's said that Saks Inc. (B+/positive) announced today that it was offering to purchase up to $100 million of its 8.25% notes due 2008 via a modified Dutch Auction.

Although this is a deleveraging event, S&P said it will not have an immediate impact on the company's credit rating.

The outlook is already positive and incorporates our view that management has a renewed focus on improving the business and is targeting a more conservative balance sheet with a goal of funded debt to EBITDA ratio of less than 2.5 times, the agency noted.

Pro forma for this transaction, that ratio for 2006 was 3.7 times, the agency said.

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