Fitch downgrades Best Buy to BB-, outlook negative

theflyonthewall.com

Fitch Ratings has downgraded its Issuer Default Rating on Best Buy to 'BB-' from 'BB+'. The Rating Outlook is Negative. Fitch believes that Best Buy faces headwinds around market share that are having an adverse impact on comparable store sales, profitability, and the company's credit profile. The Negative Outlook reflects (i) the potential for an accelerating shift in consumer electronics sales to the online channel and (ii) Fitch's skepticism that the strategic plan laid out by new management, which shed some light on cost cutting programs and initiatives to reinvigorate sales, will achieve the targeted improvements and curb market share losses and profitability declines. The ratings continue to reflect Best Buy's strong liquidity position and free cash flow generation.

View Comments (0)