S&P rates Sears Canada loans BBB-

Standard & Poor's said it assigned its BBB- rating and a recovery rating of 1 to Sears Canada Inc.'s C$600 million in credit facilities.

The corporate credit rating is BB+ and the outlook is negative.

Sears Canada's proposed facilities consist of a C$400 million credit A secured revolving facility due 2010 and a C$200 million non-revolving credit B secured facility due 2012.

The ratings reflect a shift of financial policy and philosophy of 54% majority owner and controlling shareholder Sears Holdings Corp. (BB+/negative/--), S&P said.

Sears Canada's credit profile has been weakened by the financial policy decision to sell its financial services and credit card business, reducing a historically important source of earnings and cash flow, S&P said.

The ratings also reflect the company's current weak operating performance, which is not expected to improve under its new financial policies, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.