Fitch drops RadioShack

Fitch Ratings said it has downgraded the long-term issuer default rating for RadioShack Corp. to C from CC.

The downgrade reflects the high likelihood that RadioShack will need to restructure its debt in the next couple of months, the agency said.

There has been a material deterioration in its liquidity in the last quarter and Fitch noted that it believes there will be a funding shortfall going into the holiday season.

Management indicated that it is exploring options for overhauling its balance sheet and that it is in advanced discussions with a number of parties, Fitch said.

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