RadioShack Corporate Credit Rating Lowered To 'BB-' On Expectations For Continued Weaker Performance; Outlook Stable Nov 11
- Language: English
- Published: November 2011
In our view, Fort Worth, Texas-based consumer electronic goods and services retailer RadioShack Corp.'s poor operating and financial performance trends will continue into fiscal 2012 due to increased competition in lower-margin mobility products. We believe that it will be very difficult for the company to improve its gross margin in the near term, given the changing industry dynamics. We are lowering our corporate credit rating and senior unsecured debt rating on the company to 'B+' from 'BB-'. The outlook is negative, reflecting our view that if there is further deterioration in operating performance, margins, and credit metrics, we would consider lowering the rating. On March 2, 2012, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt...
Companies mentioned in this report are: RadioShack Corp.
Action: Outlook: Negative
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