Fitch affirms Target

Fitch Ratings said it affirmed Target Corp.'s long-term issuer default rating at A, bank credit facility at A, senior notes at A, short-term issuer default rating at F1 and commercial paper at F1.

The outlook is stable.

Ratings reflect Target's disciplined execution of its business strategy of offering value-oriented merchandise, which should help the company achieve long-term profitable growth, the agency said.

Ratings also consider Target's high percentage of real estate ownership and prudent financial strategy, the agency noted.

This is balanced by declining comparable store sales resulting from a decrease in consumer spending, higher charge-off rates in the credit card business and intense competition in the discounter segment, Fitch said.

Total adjusted debt-to-EBITDAR ratio was 2.3 times for the 12 months ended Nov. 1.

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