Rating Agency Downgrades Best Buy
Best Buy has had its outlook dropped to "negative" by rating agency Fitch Ratings. The move came due to the CE retail giant's reporting of dropping same-store sales last week.
The rating was moved to "negative" from its previous status of "stable."
"The change in outlook reflects the recent sharp decline in comparable store sales and the expectation that same store sales could remain significantly pressured through calendar 2009," Fitch said as part of its announcement. "As a result, operating results are expected to weaken." Fitch also said it expects competition to remain strong, due to expanded electronics offerings at discount competitors.