BBY stock falls on credit rating downgrade

Two credit rating agencies today sent Best Buy deeper into junk territory.

Best Buy's share price fell as much as 4 percent after the downgrade.

Fitch Ratings has lowered Best Buy two notches to BB-, the third level below investment grade, or junk status. The rating outlook is negative.

Standard and Poor's dropped Best Buy only one slot deeper into junk status.

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Even though the downgrades differed, the two agencies based them on similar, gloomy analyses of best buy's prospects. The moves come a day after the company announced dismal financial results and saw its stock fall 13 percent.

Fitch's Issuer Default Rating gauges the likelihood of a company defaulting on its financial obligations. As of Nov. 3, Best Buy had $2 billion of debt outstanding.

Fitch said Best Buy's ability to generate cash remains strong. But Fitch said it's skeptical that Best Buy's new CEO Hubert Joly will be able to boost sales and profits under the plans he recently laid out.

Fitch also believes Best Buy will find it difficult and expensive to retain market share as consumers gravitate toward online and brick and mortar retailers seen as offering lower prices. The report follows Tuesday's dismal earnings report from Best Buy which sent the share price plummeting 13 percent.