Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

J.C. Penney Cut to Junk by Fitch on Pricing Overhaul Concern

J.C. Penney Co.’s debt was downgraded to speculative grade by Fitch Ratings on concern that the retailer’s overhaul of pricing and reduction of promotions will fail to lure shoppers.

Penney’s issuer rating and $3.1 billion of unsecured debt was lowered to BB+, one step below investment grade, from BBB-, New York-based Fitch said today in a statement. Secured bank debt totaling $1.5 billion was cut to BBB- from BBB.

Penney’s steps may not draw consumers, hurting efforts by the Plano, Texas-based department store chain to boost sales, Fitch said. Chief Executive Officer Ron Johnson told analysts last month his plan to introduce a three-tier price model and scale back discount promotions to 12 per year may triple revenue.

“Things are likely to get worse over the near term,” Monica Aggarwal, a Fitch analyst in New York, wrote in a note to clients. Revenue may slump in 2012 as Penney offers fewer sales in “a marked departure from the industry’s high-low promotional strategy,” she said.

Penney slumped 3.1 percent to $41.35 today. The shares have climbed 18 percent this year.

Standard & Poor’s, which also rates J.C. Penney at BB+, lowered the company to junk in April 2009.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.