...A Long Road Back to Recovery: First-quarter comps came in at positive 6.2%, providing early indications that J.C. Penney Company, Inc.'s (J.C. Penney) business is beginning to turn the corner with the reintroduction of promotions, key private brands, and other remerchandising initiatives. However, the road to recovery remains highly uncertain and it is too early to ascertain whether the company will see a sustainable improvement in its business over the next 24¡36 months to a level where it can internally fund its operations and debt maturities. Improved Liquidity Profile: The Positive Outlook reflects the improved liquidity profile following a number of actions J.C. Penney has taken over the past few months, including cutting selling, general, and administrative (SG&A) expenses by almost $300 million in fourth- quarter 2013. Fitch Ratings expects overall expenses to be flat in 2014 relative to the lower 2013 expense structure. J.C. Penney announced on May 15, 2014, it is upsizing its credit...
