Skip to main content

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


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

Cam Talbot / Minnesota Wild

Talbot leads Wild to 7th straight victory

The Wild opened a four-game road trip with a win in Edmonton.

Paige Bueckers

Paige Bueckers out 6-8 weeks with injury

The Hopkins native was hurt during Sunday's matchup with Notre Dame.

Anthony Barr

Vikings' defense could get reinforcements against Steelers

Several starters could return for a critical Thursday night matchup.

Mercer ATV accident fundraiser

High schooler in coma, fighting for his life after ATV crash

Family members found the teen on the ground and unresponsive.

Nolan Sprengeler - muskie record - nov 2021

Angler officially breaks 64-year-old state muskie record

The muskellunge he caught on Nov. 22 weighed a whopping 55 pounds, 14 ounces.

coronavirus, ICU, covid-19 hospital, doctor

4th teen COVID-19 death reported in MN is the 2nd in as many weeks

All four teenage COVID-19 deaths in the state have been reported in the past two months.

Anil Menon

Minnesota native named to NASA's new astronaut class

When he's done training, he could be sent to the space station or the moon.

broadway pizza interior facebook

Gallery: Original Broadway Pizza auctioning off everything

Get your hands on some classic Broadway signage, train-themed decor and more.

art shanty projects

Art Shanty Projects to return to Lake Harriet this winter

The festival has made some creative changes in response to the COVID-19 pandemic and climate change.

flickr - gov tim walz - mn senate dfl

After 'extraordinary' revenue growth, MN projects $7.7B surplus

But finance officials note there is still "significant risk" due to economic uncertainty.