Fitch Upgrades Target

MINNEAPOLIS-Fitch Ratings has upgraded Target Corp.’s senior unsecured notes and credit facility from “A” to “A-plus.” The New York City-based ratings agency upgraded the retailer as a result of its “solid operating performance in a challenging environment.”

Target has performed well in the discount sector while competitors have lagged behind. During December the company posted a year-over-year same-store sales jump of 5.1%, while Wal-Mart’s chains increased 3%. One reason Target has performed so well is because it attracts a higher income customer than other discounters, and these customers are less affected by increased gasoline prices,” Fitch points out.