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Article: S&P cuts rating on Kmart Corp.(Standard & Poor's rating of Kmart Corp's senior unsecured debt)(Brief Article)
- Article from:
- Daily News Record
- Article date:
- June 20, 1996
CopyrightCOPYRIGHT 1996 Conde Nast Publications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NEW YORK (FNS)--Citinga "significant" increase in secured debt and poor operating results, Standard & Poor's cut the credit ratings of Kmart Corp. and continued the outlook as negative.
Coming on the heels of Kmart's $4.7 billion bank refinancing, comprising $1 billion from the sale of convertible securities and a $3.7 billion bank facility, the S&P announcement stated that the funds improved the company's financial flexibility. However, S&P added that uncertainty remains on when the any will return to profitability.
S&P points out that the new $3.7 billion bank facility is secured by virtually all of Kmart's assets, ...