Fitch downgrades Sears ratings

New York -- Fitch Ratings downgraded the credit ratings of Sears Holding Corp. from “CCC” to “CC,” citing the “magnitude” of the retailer’s drop in profitability and lack of visibility to turn operations around as a significant concern.



Fitch also cited the company’s cash burn rate, calling it a “significant concern.”



“Given the significant cash burn in the business, Sears injected $2 billion in liquidity in 2012 and $2.5 billion in 2013 through cuts in inventory buys, asset sales, real estate transactions and the issuance of a $1 billion five-year first lien secured loan in October 2013,” Fitch said.



Fitch said Sears’ funding options “may not be enough to support operations beyond 2016.″