S&P: Best Buy outlook positive

Standard & Poor's said it revised the outlook for Best Buy Co. Inc. to positive from stable and affirmed the company's ratings, including the BBB- corporate credit rating.

S&P rates Best Buy's bank loan BBB-, senior unsecured debt BBB- and subordinated debt BB+.

S&P said the outlook revision is based on Best Buy's improving credit measures and continued positive same-store sales trends.

The ratings reflect the company's leading position in consumer electronic sales, healthy operations despite a weaker U.S. economy over the past few years, and favorable growth prospects for digital consumer electronics. This is partially mitigated by inherent risks due to the cyclical nature of the consumer electronics industry and competition from discount or "category killer" retail formats in many product categories, the agency said.

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