Moody’s Investors Service downgraded Sears Holdings’ speculative grade liquidity rating to SGL-3 from SGL-2. All other ratings, including the company’s Caa1 corporate family rating, are unaffected.

Moody’s said Sears’ Caa1 rating reflects the company’s sizable operating losses and its operating cash flow deficit (including pension and postretirement contributions) was approximately $2.2 billion. It remains uncertain if the company’s operating strategies will stem its continued losses and be sufficient for its cash burn to approach breakeven levels.

The ratings also reflect Moody’s uncertainty of the viability of Sears’ Kmart franchise, given its meaningful market share erosion.