Fitch has posted a 300 page report on major retail firms. It will be called ‘High Yield Retail Checkout’
The report will be negative in its review of certain companies which include Sears (NASDAQ: SHLD), Bon-Ton, RadioShack Corp (NYSE: RSH)., and SUPERVALU Inc. (NYSE: SVU). Each of these, the ratings firm says, have lost market share.
Fitch take a more positive attitude toward market share gainers: Neiman Marcus, Inc., Hanesbrands, PVH, Limited Brands (NYSE: LTD), Sally Beauty, Toys ‘R’ Us, Michaels, Dollar General, GNC, and NBTY.
The firm commented that
In general, Fitch believes near-term liquidity (cash and credit facility availability) remains adequate to address the key fixed obligations of the majority of the high yield issuers. One notable exception is Sears, which is seeing its liquidity profile worsen as it continues to burn free cash flow (FCF).