Fitch lifts J.C. Penney ratings

Fitch Ratings said it upgraded J.C. Penney Co. Inc.'s $1.5 billion secured bank facility to BBB- from BB+, its senior unsecured notes to BB+ from BB, and its convertible subordinated notes to BB from B+.

Penney's ratings are removed from Rating Watch positive, where they were placed on June 17. The outlook is positive.

Fitch said the upgrades follow the sale of the Eckerd drugstore business and reflect the expectation of a significant reduction in financial leverage over the next two years. The outlook reflects solid operating momentum in the company's department store business, which is generating strong comparable store sales growth and improving margins.

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