Skip to main content

S&P cuts Target's debt rating following data breach

  • Author:
  • Updated:

Standard & Poor's dropped Target Corp.'s debt rating by one level Friday as the Minneapolis-based company's massive data breach and sluggish performance in Canadian markets hurt fourth-quarter profits, Bloomberg News reports.

Target's rating was dropped from an "A+" to an "A" by the New York-based S&P.

According to the organization, a credit rating from S&P is an "opinion on the general creditworthiness of an obligor, or the creditworthiness of an obligor with respect to a particular debt security or other financial obligation."

Bloomberg says Target's fourth-quarter net income dropped 46 percent as the nation's second-largest discount retailer in the U.S. worked to keep customers after the data breach. A reported 40 million payment card records were stolen from Target along with 70 million other records, including customer information, during the data breach in December.

S&P says the data breach may have a "lingering effect on customer traffic at least through the first half" of Target's fiscal year – but the outlook is stable.

The drop in the S&P rating comes shortly after Target Chief Financial Officer John Mulligan testified before the U.S. Senate Committee on Commerce, Science and Transportation.

The Business Journal says Mulligan was in Washington, D.C., Wednesday to give an update on what the company is doing in response to the data breach. Mulligan said the company has accelerated the process of implementing chip-enabled credit card readers in all of its stores.

The company says 10,000 readers are in 325 Target stores already, and it expects all of its 1,800 stores to have the technology in its stores by September – six months ahead of schedule.

Bloomberg says Target shares were up 0.4 percent to $59.98 on Friday. Shares are down 5.2 percent so far this year, the news service says.

Next Up

Screen Shot 2022-08-14 at 10.24.22 AM

Teen driver crashes into parked payloader; 16-year-old passenger dies

The crash happened early Saturday morning in Waconia.

Screen Shot 2022-08-14 at 10.10.50 AM

Barrage of gunfire injures boy in Brooklyn Park; vehicles, apartments damaged

Police say they recovered evidence that more than 40 rounds were fired in the shooting.

Screen Shot 2022-08-14 at 9.15.07 AM

Minnesota Wild back away from thin blue line T-shirt giveaway

The giveaway backfired when word of it reached social media.

Screen Shot 2022-08-13 at 1.26.13 PM

Workers at Minneapolis Trader Joe's become 2nd in nation to unionize

The vote was certified by the National Labor Relations Board Friday.

ATV, all-terrain vehicle

Driver killed in ATV crash in Brooklyn Park

The crash occurred in Monroe Park Friday night.


Woman killed by suspected drunk-driver in St. Louis County

The crash occurred on Highway 21 in Embarrass Township Friday night.

Jaelyn Campbell

11-year-old girl missing from Mille Lacs County

Jaelyn Campbell was last seen in Onamia.

Screen Shot 2022-08-12 at 1.58.08 PM

2 ejected, 1 killed in crash that closed southbound I-35

The State Patrol says neither were wearing seat belts.

best buy

Best Buy makes job cuts weeks after warning of soft sales

The Richfield retailer has been dealing with a shift in consumer trends.

Screen Shot 2022-08-12 at 10.26.20 PM

Man makes 'vague comments' about Jewish people, smashes own car with club

It happened at a course that was founded as a Jewish country club 100 years ago.

Screen Shot 2022-08-12 at 9.59.07 PM

4 abandoned puppies found in a bucket in Willmar

The puppies were in good health when they were discovered.

Minneapolis police

Suspect of home invasion, murder in Minneapolis arrested in Wisconsin

There have been 57 deaths reported as homicides in Minneapolis this year.