Fitch: RadioShack loan BBB-

Fitch Ratings said it assigned a BBB- rating to RadioShack Corp.'s new $450 million senior secured asset-based revolving credit facility. The rating is two notches above the company's issuer default rating of BB, which was affirmed along with its unsecured notes at BB.

The outlook is stable.

The asset-based revolver will be used for working capital and general corporate purposes, and replaces the company's existing $325 million senior unsecured revolving credit facility that was scheduled to mature on May 2. Fitch withdrew ratings on this revolver.

The new facility is guaranteed by certain of RadioShack's existing and future direct and indirect domestic subsidiaries, the agency said.

The ratings continue to reflect RadioShack's relatively steady operating results as growth in its wireless business has offset soft sales trends in many of the company's other business segments, Fitch said.

The ratings further reflect the company's positive free cash flow generation, relatively steady credit metrics and adequate liquidity, the agency said.

Concerns relate to RadioShack's long-term ability to maintain revenue and earnings growth given the technology cycle and highly competitive operating environment and the company's shareholder-friendly posture, Fitch said.

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