Standard & Poor’s Ratings Services is lowering its credit rating on J.C. Penney Co. further into junk status, saying Wednesday that the department store chain’s performance remains weak.
The ratings agency said it lowered its credit rating on the Plano, Texas, company to “B+” from “BB-.” The junk rating is four notches below investment grade. The move marks the second downgrade from S&P since mid-May.
S&P credit analyst David Kuntz noted that Penney is likely to “experience some further operational disruptions” over the next several quarters as it carries out its new pricing and merchandising strategy.
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