Research Update: RadioShack Corp. Corporate Credit Rating Lowered To 'B+' On Expectations Of Further Weak Performance; Outlook Negative Mar 12

  • ID: 2083059
  • March 2012
  • Standard & Poors
1 of 3

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: Downgraded
Action: Outlook: Negative

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.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

Note: Product cover images may vary from those shown
2 of 3

RadioShack Corp.

Note: Product cover images may vary from those shown
3 of 3
Note: Product cover images may vary from those shown




Our Clients

  • Fluidigm Corporation
  • Apple, Inc.
  • CEVA Santé Animale
  • Abbott Laboratories Ltd.
  • Merck Group
  • Allergan Inc.
  • Pfizer Inc.