S&P puts Saks on watch

Standard & Poor's said it placed all ratings, including the BB corporate credit rating, on Saks Inc. on CreditWatch with negative implications.

"The CreditWatch placement reflects our view that there is a high likelihood that the company could be acquired by either a financial or strategic sponsor," said credit analyst David Kuntz in a news release. "In our opinion, such a transaction could add a substantial amount of debt to the company.

"As a result, the company's credit metrics, which are currently commensurate with the company's 'intermediate' financial risk profile, would weaken. As of first quarter 2013, leverage was 2.2x, interest coverage was 4.9x, and funds from operations to total debt was 46.0%."

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