S&P: Target unchanged

Standard & Poor's said that the current ratings and outlook on discounter Target Corp. (A+/stable/A-1) would not be affected by its announcement that it has signed an agreement to sell a 47% interest in its credit card receivables to JPMorgan Chase for $3.6 billion.

JPMorgan Chase will be assuming the risk of the receivables it is purchasing, the agency said, noting that the transaction has a five-year term, at the end of which - unless extended - JPMorgan will receive principal payments for its invested capital, while Target would solely fund new receivables.

Subject to portfolio performance, the agency said that it expects repayment to be completed by the sixth anniversary of closing.

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