Best Buy Falling Apart Intra-Day On Credit Downgrade
Shares of Best Buy (NYSE: BBY) have been headed straight down throughout Monday's trading session and are currently sitting at new intra-day lows. The stock has shed 3.29% to $31.41 after opening near the flat line. Fitch Ratings cut the company's credit rating by two notches today, putting it on the verge of junk status.
The ratings firm cited the retailer's sluggish same-store sales and weak performance compared with its peers. Fitch downgraded BBY debt to BBB- with a stable outlook. The analysts believe that the consumer electronics and appliances retailer is losing market share, while maintaining low market share in highly competitive segments such as gaming and tablet computers. "Overall, the technology march continues and Fitch believes that it will be difficult for Best Buy to maintain its position in an increasingly competitive landscape," Fitch said.
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