Best Buy Continues to Crumble After S&P Puts Credit Rating on Negative Watch

On Tuesday afternoon, Standard & Poor's put Best Buy's

corporate credit rating on CreditWatch with negative implications. The action may be precipitating an outright downgrade, which would sink the company's BBB- rating into junk territory. In a statement, S&P cited Best Buy's recent announcement of store closures as part of a cost reduction program. The credit agency said in a statement that “these actions underscore that its current business model is not working and that the steps taken to date have not been enough to improve performance." At last check, BBY shares had lost 2.68% to $22.92 during Tuesday's trading session. The stock has been in a steep downtrend ever since the company reported quarterly results on March 29.