Fitch upgrades rating on Dillard's

New York City Fitch Ratings on Monday raised some of its ratings on Dillard's debt, saying the department store operator has improved its credit and liquidity positions.

The rating outlook is stable, Fitch said.

While Dillard's credit metrics are strong for the rating category, Fitch said the ratings take into account the company's softer revenue over several years and profitability below the industry average.

The company has shown some positive trends in key sales measurements, but Fitch said it remains cautious about its long-term potential.

Fitch upgraded its long-term issuer default rating on Dillard's to "BB-" from "B," upgraded its rating on its $1.2 billion secured credit facility to "BB+" from "BB/RR1" and upgraded its capital securities rating to "B" from "B-/RR1".