S&P upgrades Dillard’s to BBB-

Standard & Poor's said it raised its ratings, including the corporate credit rating, on Dillard's Inc. to BBB- from BB+.

The outlook is stable.

"The upgrade reflects our view that the company has consistently improved its operating measures to a level that is more comparable to other higher-rated investment-grade rated department stores (such as Macy's, Kohl's, and Nordstrom), although we don't expect the company to completely close the gap given its target markets and lower cost structure," S&P credit analyst Helena Song said in a news release.

"We also note that margins have improved over the past two years, whereas the department store sector has faced a declining trend. Accordingly, we reassessed the comparable rating analysis to ‘neutral’ from ‘unfavorable.’"

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