Fitch affirms Kohl's

Fitch Ratings said it affirmed Kohl's Corp.'s issuer default rating, $900 million senior notes and debentures and $900 million revolver at A.

The outlook is stable.

The ratings reflect Kohl's convenient off-mall store format, the geographic diversity of its store base and its solid financial profile. The agency said Kohl's operating momentum is being sustained by the introduction of updated and contemporary styles and improved inventory management. The company has placed particular emphasis on upgrading its private and exclusive national brands, which account for 26% of sales. These improvements led to a 6.9% increase in comparable store sales in the first nine months of 2006.

These strengths are balanced against the challenges of executing an aggressive expansion program as well as the competitive nature of middle market retailing, Fitch said.

Adjusted debt to EBITDAR was 1.6x for the 12 months ended Oct. 28.

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