Investors Shrug Off S&P Ratings Upgrade Of JC Penney's Debt

Shares of J C Penney Company Inc JCP were trading lower by nearly 2 percent Wednesday afternoon as investors and traders appear to shrug off a notable upgrade by S&P Ratings Services.

According to Barron's, S&P Ratings Services upgraded JC Penney's debt rating to B from triple-C-plus. The publication noted that the upgrade is "significant" as it implies the retailer is "out of the perilous triple-C grades."

S&P Ratings Services revised its upgrade higher due to JC Penney's turnaround efforts that are proving to be "sustainable in the challenging U.S. department store environment." The rating agency added that the ongoing momentum implies the company is in a better position to "support current debt burden."

S&P Ratings Services added that it's open to further upgrades if JC Penney manages to report an adjusted EBITDA of $1.5 billion during the full year 2016 - above a base case forecast of around $1.2 billion.