Moody's lifts Sears Canada to SGL-2

Moody's Investors Service said it upgraded Sears Canada's speculative-grade liquidity rating to SGL-2 from SGL-3.

The upgrade recognizes the positive impact improved operating results have had on the company's ability to generate internal cash flow, as well as increased headroom under its debt covenants, the agency said.

The SGL-2 rating remains constrained by the opacity of Sears Canada's operating strategy and financial policy, as well as its limited available alternate sources of future liquidity as a result of the pledging of all operating assets, Moody's noted.

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