S&P: Saks unaffected

Standard & Poor's said Saks Inc.'s (B+/Watch developing) announcement that it has completed an internal investigation related to improperly collected markdowns, and that it will reimburse vendors $48 million has no effect on the company's credit profile.

The agency said it believes the company has more than adequate liquidity to make these payments. In addition, Saks said that it will restate quarterly earnings for fiscal years 2003 and 2004, and that it expects to file its delayed 10-K annual report for the fiscal year ended Jan. 29 on or shortly after Sept. 1.

The restatements are not expected to be material and S&P said its ratings on Saks remain on CreditWatch with developing implications related to continued uncertainty regarding the company's ability to sell its Northern Department Store Group, the amount of potential proceeds and future capital structure.

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