Best Buy's credit rating slips


Another bit of disappointing news for troubled Best Buy. The Business Journal reports that two credit ratings services cut the Richfield-based retailer's rating. Standard and Poor's lowered the rating by one step, from BB+ to BB. Meanwhile, Fitch Ratings dropped Best Buy by two notches, from BB+ to BB-.

Both firms also say they have a negative outlook for the company.

This news comes just one day after Best Buy reported worse-than-expected financial results from the third quarter.

On Tuesday, Best Buy's stop plummeted by 13 percent. On Wednesday, Best Buy's stock fell by more than 3 percent. At the close on Wednesday, shares were at $11.57.

The news comes as the electronics giant is poised for the most lucrative weeks for its stores heading into the holiday season

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Ratings agencies among skeptics of Schulze's plan to buy Best Buy

Richard Schulze may have trouble financing his offer to buy up all the shares of Best Buy. He'd need to take on an estimated $7 billion in debt to swing the deal. That prospect led both S&P and Fitch to further reduce Best Buy's already poor credit rating.

Ratings agency lowers outlook on Best Buy debt to negative

Fitch Ratings says its negative outlook stems from the possibility that Best Buy's restructuring will not be enough to offset its financial pressures. The electronics retailer faces more than $2 billion in outstanding debt. Its rating from Fitch is one step above junk bond status.

S&P puts Best Buy's debt on credit watch

Standard & Poor's says the Richfield-based company needs to make changes to its business model to improve performance. Last week Best Buy unveiled plans to close 50 big-box stores, including five in Minnesota.

An electric week for Best Buy

Minnesota-based electronics retail giant Best Buy, reeling from a string of bad news in recent months, had another interesting week. On Thursday, founder Richard Schulze cut ties to the company's board. Would he sell his stake in the company, position himself for a private takeover, or something else?

Best Buy bid delayed?

Richard Schulze wants more time before making an offer for Best Buy, the company that he founded. Reuters reports Schulze, who has been working on his offer for months, is expected to take a 30-day extension to mid-December before submitting his final purchase proposal to Best Buy's board. Citing sources close to Schulze, the Star Tribune reported that his bid would come next week.