SEARS’ CREDIT RATING FALLS DEEP INTO ‘JUNK’ TERRITORY

S&P Global downgraded the corporate credit rating of Sears Holdings after the embattled retailer said it was in talks to restructure potentially more than $1 billion of corporate debt. The financial rating agency cut the rating for the Hoffman Estates, Ill.-based company from CCC to CCC-, an indication of significant speculative characteristics regarding the debt, along with a negative outlook. S&P Global’s announcement said it viewed the potential restructuring of non-first-lien debt as “distressed” because it believed “lenders would receive less than the original promise” of repayment.