...Best Buy Co., Inc.'s ratings reflect the company's significant progress in both managing its cost structure and stabilizing its revenue trajectory through price matching, enhanced vendor partnerships and omnichannel investments. The company has stabilized its market share and EBITDA has grown to $2.7 billion from a $2 billion trough. The Positive Outlook reflects Fitch Ratings' increased confidence that Best Buy will maintain EBITDA in the $2.6 billion¡$2.7 billion range supported by same store sales growth of 1%¡2%. The company should maintain adjusted leverage around low 2x if it continues to fund share buybacks with internally generated FCF. Fitch would also need clarity around policy and cash deployment post fiscal 2019 to consider an upgrade. Given FCF expectations, Best Buy would have to reduce its share buybacks after completing its two-year, $3 billion buyback program. Ratings continue to be constrained by the consumer electronics market, with stagnant-to-negative growth and channel...
