S&P keeps hhgregg on watch

Standard and Poor's said that its ratings on hhgregg Inc. and subsidiary Gregg Appliances Inc., including the B+ corporate credit rating, remain on Creditwatch with negative implications, where they were placed on July 9.

"The ratings remain on Creditwatch with negative implications because of the company's recent announcement that it plans to accelerate new store openings (including the addition of 20 to 22 new stores this fiscal year and 40 to 45 new stores next fiscal year) and construct a new distribution center to support its expansion into certain Mid-Atlantic markets during a period of substantial economic weakness, and the possible strain on management resources," said S&P credit analyst Jerry Phelan.

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