Fitch affirms Saks ratings

Fitch Ratings said it has affirmed the ratings of Saks Inc. following the company's announcement that it will be paying a $284 million special dividend on March 17. Fitch rates Saks' $800 million secured bank facility BB+ and its $1.2 billion of senior notes BB-.

The outlook remains negative.

Fitch said payment of the dividend will diminish Saks' cash liquidity, which totaled $366 million as of Jan. 31, 2004, and modestly reduce its financial flexibility.

Following payment of the dividend, Saks is expected to have sufficient cash on hand and other sources of liquidity to repay $143 million of debt maturities in 2004. Other sources of liquidity include an $800 million secured revolver, which is unused, and cash flow from operations.

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