February 22, 2012
Updated Feb 22, 2012 at 11:50 AM CDT
NEW YORK, N.Y. -- J.C. Penney's move from constant promotions to everyday low prices has earned the retailer a lower credit rating.
Fitch Ratings downgraded the retailer one notch to a double B +.
Fitch said J.C. Penney faces a volatile year, and it is uncertain if consumers will buy into the new pricing structure.
Last month, J.C. Penney announced a new pricing tier: everyday pricing, month-long values and best prices or clearance.
Company executives said it will make the $1 billion transformation without borrowing and expects positive earnings next year.
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