New York, NY, June 24--Moody's Investors Service on Wednesday raised the outlook for Federated Department Stores Inc.'s debt ratings to "stable" from "negative," citing factors including stronger sales and the fact Federated will not be buying the Marshall Field's department store chain.
May Department Stores Co. this month agreed to acquire the Marshall Field's department store group and nine Mervyn's store locations from Target Corp for $3.24 billion in cash. Federated had also looked at buying the chain, sources familiar with the situation said.
Moody's also affirmed the senior unsecured rating for Federated Department Stores at "Baa1," the third lowest investment-grade rating.
