Fitch Ratings downgraded its credit rating on Sears (NASDAQ:SHLD), citing its declining profits and no clear turnaround plan.
The credit ratings agency said Wednesday that it cut Sears' issuer default rating two notches to "CC" from "CCC," which puts the retailer's credit rating deeper into junk status.
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The company, which operates Sears and Kmart stores, reported a wider loss in its second quarter compared with a year ago. Sears said it planned to do more cost cutting and close more stores than it previously announced to turn the company around.
"We don't agree with their action given our demonstrated history of honoring our financial commitments while continuing to invest in our transformation," said Sears spokesman Howard Riefs, in a statement Wednesday.
Shares of Sears Holdings Corp., based in Hoffman Estates, Illinois, rose 67 cents, or 2 percent, to close at $33.57.