Sears reported a Q3/16 net loss of $748 million, 65% higher compared to last year’s loss of $454 million. Revenues declined to $5.0 billion from $5.8 billion on lower same-store sales and store closings.
Moody’s downgraded Sears’ speculative grade liquidity rating to SGL-3 from SGL-2, noting the company will continue to rely on external financing and monetization of assets to fund losses. Moody’s also questioned the viability of the Kmart franchise.
Sears Holdings announced that its subsidiaries have borrowed $1 billion under a new a senior secured term loan facility. According to an SEC filing, Bank of America served as agent.