BIRMINGHAM, Ala.–(BUSINESS WIRE)–June 16, 2005–Retailer Saks Incorporated (NYSE:SKS) (the “Company”) today issued a response to Standard & Poor’s decision to downgrade the Company’s credit ratings. Douglas E. Coltharp, Executive Vice President and Chief Financial Officer of the Company, noted, “We are extremely surprised and perplexed with yesterday’s announcement from S&P. We believe this action was unfounded given the overall strength of our financial position and our ability and intent to fully retire any accelerated debt, as well as the fact that we have the 60-day cure period to negotiate with note holders if we choose to do so. As we reiterated yesterday, we expect to file our prior year Form 10-K and our first quarter Form 10-Q on or before September 1, 2005, thereby addressing the specific reason the notice of default was issued in the first place. It is and remains business as usual for our Company.”
Saks future involves risks and uncertainties. In their press release Saks mentioned “successful operation of the Company’s proprietary credit card strategic alliance with HSBC Bank Nevada, N.A.” According to Household - HSBC Watch consumer advocates, HSBC NV is the new name of former predatory lender Household International. “When Saks signed with Household International, Saks CEO R. Brad Martin called Household ‘one of the most respected names in the industry’ — just before a nationwide $484 million predatory lending settlement tarnished their already stained reputation forever” said Household - HSBC Watch. “Standard & Poor’s is not stupid. Many analysts, bankers, public relations professionals, and reporters visit our website every day” the group went on to say.
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