Moody's: Sears outlook positive

Moody's Investors Service said it affirmed Sears Holdings Corp.'s corporate family rating at Ba2, probability of default rating at Ba2 and speculative grade liquidity rating at SGL-2, along with Sears, Roebuck and Co.'s issuer rating at Ba2, Sears Roebuck Acceptance Corp.'s 5.2% to 7½% medium-term notes due 2010 and 2013 at Ba3 (LGD5, 72% from LGD5, 76%), 6¼% to 7½% notes due 2010 and 2043 at Ba3 (LGD5, 72% from LGD5, 76%) and Sears DC Corp.'s 9.07% to 9.2% medium-term notes due 2012 at B1 (LGD6, 97%).

Its outlook was revised to positive from stable.

The positive outlook reflects the potential for ratings to rise in the near to medium term, Moody's said. Sears' credit metrics, while largely representative of its Ba2 rating, remained in a stable band during the financial downturn, the agency said.

The ratings continue to reflect its formidable position in hard lines and related service segments, led by its proprietary market-leading Kenmore and Craftsman brands, which offsets the struggling soft lines business, the agency said.

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