DUFF & PHELPS REDUCES RATING ON KMART DEBT
NEW YORK — Duff & Phelps Credit Rating Co. on Wednesday downgraded Kmart Corp.’s long-term senior debt rating to double B from triple-B-minus, affecting $2 billion in debt securities. Last Friday’s Standard & Poor’s downgraded Kmart’s debt ratings to below investment grade and kept the debt on CreditWatch with negative implications.
Duff & Phelps cited “continuing concerns regarding Kmart’s ability to turn around its troubled general merchandise business.” The rating agency added that the chain’s “prospects for successfully revitalizing its operations are made increasingly difficult by its formidable and well-capitalized competitors and the current weak retailing environment.” — Fairchild News Service