Fitch rates Sears notes C

Fitch Ratings said it assigned a C rating with recovery rating of RR6 to Sears Holdings Corp.’s $625 million 8% unsecured notes due 2019.

Fitch also said it affirmed the long-term issuer default ratings on Sears Holdings at CC, along with its various subsidiary entities at CC.

The magnitude of Sears’s decline in profitability and lack of visibility to turn operations around remains a significant concern, the agency said.

Fitch said it expects domestic EBITDA to be negative-$850 million to negative-$1 billion in 2014 and potentially worse in 2015, after turning negative-$340 million in 2013.

Sears would need to generate a minimum EBITDA of $1 billion annually between 2014 through 2016 to service cash interest expense, capital expenditure and pension plan contributions, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.