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RadioShack Corp. Ratings Lowered To 'BBB-' From 'BBB+' On Weak Results; Outlook Stable
Standard & Poors, April 2006
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
NEW YORK (Standard & Poor's) April 21, 2006--Standard & Poor's Ratings Services said today it lowered its corporate credit and senior unsecured ratings on Fort Worth, Texas-based RadioShack Corp. to 'BBB-' from 'BBB+'. At the same time, the short-term rating was lowered to 'A-3' from 'A-2'. The outlook is stable. "The downgrade reflects a significant weakening of operating results, and our expectation that RadioShack may fail to show the timely recovery in performance and in credit ratios," said Standard & Poor's credit analyst Diane Shand. RadioShack is encountering business disruptions due to the termination of its Verizon Wireless agreement, a slower-than-expected ramp-up of its Cingular wireless business, as well as slowing demand for higher-margin merchandise, and increased promotional activity. The...
Companies mentioned in this report are: RadioShack Corp.
Action: Outlook: Stable