Moody's lowers Sears

Moody's Investors Service said it downgraded to Ba2 from Ba1 the corporate family and probability of default ratings for Sears Holdings, Inc.

Moody's said it also downgraded the company's speculative-grade liquidity rating to SGL-2 from SGL-1.

The outlook is stable.

These rating actions conclude the review for possible downgrade initiated on Dec. 8, the agency said, adding that the downgrade is based primarily on the continuing decline in Sears' operating performance, which has caused leverage and interest coverage to deteriorate to levels representative of the Ba2 rating category.

"Sears remains challenged in certain product segments, with the macroeconomic downturn impacting even its traditionally solid hardlines business," stated Moody's senior analyst Charlie O'Shea.

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