S&P: Dillard's unaffected

Standard & Poor's said Monday that Dillard's Inc.'s (BB/negative/--) announcement that it has agreed to sell its private-label credit card business to GE Consumer Finance for about $1.25 billion has no immediate impact on the current ratings or outlook.

The actual amount of proceeds will depend on the amount of credit card receivables outstanding at the close of the transaction. After deducting the $400 million of securitized liabilities that will be assumed by GE, Dillard's will have another $850 million of proceeds available to it to retire debt, repurchase stock, pay a dividend, or reinvest in the business.

S&P said that because management has yet to make a determination as to how proceeds will actually be used, the company's credit profile is unchanged.

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