Fitch downgrades RadioShack

Fitch Ratings said it downgraded RadioShack Corp.'s issuer default rating to BB from BB+, bank credit facility to BB from BB+ and senior unsecured notes to BB from BB+.

The short-term issuer default rating is affirmed at B.

The outlook is negative.

The downgrade reflects continued weakness in many of RadioShack's business segments, concerns about revenue trends and the company's ability to produce sustainable profitability, Fitch said. The company's credit metrics remain weak with the ratio of total adjusted debt to EBITDAR of 4.5 times for the past 12 months ending March 31.

The agency said the ratings also consider management's efforts to improve operating efficiency and the challenges of executing a turnaround in a highly competitive operating environment.

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