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

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

  • Published: March 2012
  • Standard & Poors

Abstract
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 READ MORE >

RadioShack Corp.

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