Standard & Poor’s Cuts Target’s Debt Rating

The ratings agency cut the debt rating by one notch to “A” from “A+,” and the outlook is “stable.”

TARGET’S DEBT RATING CUT: Ratings agency Standard & Poor’s has cut the debt rating of Target Corp. by one notch to “A” from “A+,” and the outlook is “stable.” Target in recent months has been dealing with issues surrounding its data breach that resulted in reduced traffic, impacting overall profitability at the discounter.

The agency said it expected a “lingering effect” on customer traffic through the first half of 2014, adding too that expenses related to the breach are likely as well.

In addition, Target’s Canadian operation tallied bigger-than-expected losses in the fourth quarter.