S&P lowers Toys R' Us

Standard & Poor's said it lowered the ratings on Toys 'R' Us Inc., including its corporate credit rating to B- from B.

The outlook is stable.

The recovery ratings on the debt issues at Toys 'R' Us and its subsidiaries are unchanged.

The ratings reflect the company's weak business risk profile and highly leveraged financial risk profile, S&P said.

The company's recent weak results stem from an evolving competitive landscape that is unlikely to improve, said Ana Lai, an S&P analyst.

"We think Toys needs to take substantial strategic actions to deal with an otherwise declining sales trend," Lai said in a press release.

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