S&P lowers Saks

Standard & Poor's said it lowered its corporate credit rating and senior unsecured debt ratings for Saks Inc. to B+ from BB and revised the CreditWatch implications on the ratings to developing from negative.

The downgrade follows the company's disclosure that it did not file its annual 10-K report for the fiscal year ended Jan. 29, 2005 by the prescribed due date and that it does not expect to make the filing by the April 29 extended deadline.

The inability to file in a timely manner relates to a previously disclosed internal investigation into accounting for vendor allowances, S&P said. The investigation has now been broadened to include other related accounting and financial matters. Moreover, if there are findings that any individual with direct responsibility for accounting and financial reporting matters has been found to have acted improperly, the 10-K would not likely be available before July 2005 and the first-quarter 10-Q filing would also be delayed.

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