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Moody's Cuts Kmart to Junk Status
Reuters ^
| Dec 14, 2001
Posted on 12/14/2001 12:34:53 PM PST by Leroy S. Mort
NEW YORK (Reuters) - Moody's Investors Service late Friday cut Kmart Corp.'s(KM.N) senior unsecured debt rating to "junk" status, and warned it may be "some time" before the No. 2 U.S. discount chain can significantly improve its finances.
The rating agency cut Troy, Michigan-based Kmart's senior unsecured debt rating two notches to "Ba2," its second highest junk grade, from "Baa3," and its commercial paper rating to "Not-Prime" from "Prime-3." Its rating outlook is negative, and its actions affect about $4.7 billion of debt.
Moody's said Kmart faces a "continuing challenge" to improve its operations, and that "it may be some time before internal performance and external market conditions improve to the point that a significant de-leveraging is a highly probably event." It also said there is a "lack of sufficient evidence" that Kmart's financial performance has "bottomed."
Kmart last week reported a 2.6 percent November decline in same-store sales. Last month it reported a $224 million third quarter net loss, or 45 cents per share, as it lost ground to No. 1 rival Wal-Mart Stores Inc. (WMT.N) in the battle to find bargain-minded shoppers squeezed by the weakened U.S. economy.
Downgrades to junk ordinarily raise borrowing costs. Kmart shares traded late Friday on the New York Stock Exchange at $5.82, down 21 cents. They began the year at $5.31.
TOPICS: Business/Economy; News/Current Events
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To: Leroy S. Mort
"I got a '34 wagon and they call it a Woody"
To: Leroy S. Mort
Last month it reported a $224 million third quarter net loss, or 45 cents per share, as it lost ground to No. 1 rival Wal-Mart Stores... Has'nt K-Mart been losing Millions-$$'s for about 64 consecutive quarters by now?
3
posted on
12/14/2001 12:42:52 PM PST
by
Swanks
To: Leroy S. Mort
Moody's Cuts Kmart to Junk StatusWhy not? Everything they sell is junk...
4
posted on
12/14/2001 12:44:43 PM PST
by
ambrose
To: Leroy S. Mort
maybe rosie will bail them out.
To: Rustynailww
Ever since the Rosie and gun thing I have not spent a penny with K-Mart.
I know lots of other people who refuse to shop their too.
I don't think they have a clue. They couldn't do well when times were booming they are not likely to do well in a down turn.
To: Leroy S. Mort
KMART SUCKS
To: Leroy S. Mort
But...but...where will I go to buy Martha Stewart sheets?
8
posted on
12/14/2001 1:02:09 PM PST
by
YaYa123
To: YaYa123
To: Leroy S. Mort
I try to shop at my local Mom and Pop stores. The costs are a shade higher, but the people are nicer and service is better.
To: Leroy S. Mort
But..but.. Where will poor people go to hear the voice of God?
ATTENTION K-MART SHOPPERS
11
posted on
12/14/2001 1:20:42 PM PST
by
YaYa123
To: YaYa123
They have started trying to emulate Target. Too little too late. Crap merchandise from crap stores. Who needs it?
12
posted on
12/14/2001 1:21:47 PM PST
by
eno_
To: YaYa123
Yeah and what about Mr. And Mrs. Markdown, who used to waltz down the aisles in formalwear at midnight with a red pencil. I'm concerned about them....
To: Leroy S. Mort
It's nice to know that moody's finally figured out what the American public has known all along!
To: eno_
"Crap merchandise from crap stores. Who needs it?" eno, sometimes....everybody needs a little crap.
15
posted on
12/14/2001 1:31:04 PM PST
by
YaYa123
To: YaYa123
To: Swanks
Has'nt K-Mart been losing Millions-$$'s for about 64 consecutive quarters by now?Someone finally noticed. Or maybe someone from Moody's shopped there recently.
17
posted on
12/14/2001 1:40:45 PM PST
by
FreePaul
To: FreePaul
i've never been to a wal-mart or k-mart, is there really a difference. wal-mart buys chinese and k-mart malaysia. it's all junk.
To: contessa machiaveli
I don't care what kind of junk they buy or try to sell. I dislike going to any store where even if you can find one the employees don't know the location of items or in many cases don't even know what they are. Most stores are getting like that now.
19
posted on
12/14/2001 2:06:33 PM PST
by
FreePaul
To: Leroy S. Mort
Perhaps if K-Mart had more than one register open at a time, more people would shop there. K-Mart's customer service makes Wal-Mart look like Nordstrom's!
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