S&P puts Best Buy on watch

Standard & Poor's said it placed the BBB- corporate credit rating and other ratings on Best Buy Co. Inc. on CreditWatch with negative implications.

The CreditWatch placement follows Best Buy's fourth-quarter and full-year results, along with its planned closure of 50 U.S.-based big box stores, the opening of 100 U.S.-based small format stores and $800 million of cost reductions over the next five years, the agency said.

The agency said it believes the restructuring of operations underscores the problems that Best Buy is having with its current business model.

S&P said it expects to resolve the CreditWatch listing in the near term after discussions with management about the company's business strategy, cost reduction and growth initiatives.

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