Fitch: Target view to negative

Fitch Ratings said it affirmed the long-term issuer default rating on Target Corp. at A- and short-term issuer default rating at F2.

The agency also affirmed the A- rating on the company’s senior unsecured notes and F2 rating on its commercial paper.

The outlook was revised to negative from positive.

The outlook revision acknowledges the accelerated impact of changes in consumer shopping preferences on Target's near-term results and the significant investments required to stabilize market share over the longer term, Fitch explained.

Competition from online only and discount peers have pressured Target's comps yielding market share and EBITDA erosion, the agency said.

As a result, the company has been forced to accelerate investments in omni-channel initiatives and tighten its focus on pricing and merchandising assortments, Fitch said.

Fitch said it has reduced confidence in Target's ability to maintain or grow market share over the long run, given online encroachment in many of its categories and Target's pricing perception at the upper end of the discount sector.

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