More good news for J.C. Penney

J.C. Penney on Monday received an official vote of confidence in its performance: an improved credit rating.



Fitch Ratings upgraded Penney’s credit rating, saying the department store retailer has “demonstrated a meaningful turnaround of its business over the last over the last two years.” Fitch upgraded Penney from B- to B with a positive outlook.



Fitch expects the retailer to generate EBITDA of approximately $950 million in 2016 (which adds back approximately $45 million in non-cash stock-based comp) versus a better than expected $750 million in 2015.

Fitch also expects Penney to sustain same-store sales growth, including online growth, in the 2% to 3% range in 2016/2017, as it invests in areas such as Sephora, home-related categories, private brands and omnichannel.