...J. C. Penney Company, Inc.'s `B¡' Issuer Default Rating (IDR) reflects the significant EBITDA erosion in 2018, with EBITDA expected to decline to under $600 million from $886 million in 2017, and Fitch Ratings' expectation that EBITDA could remain constrained at $500 million¡$550 million in 2019 on comparable store sales (comps) decline in the low single digits. The deterioration reflects significant execution issues, and near-term, sales could be hampered by Sears Holding Corp.'s ongoing store closings and liquidation sales. There is also uncertainty around the company's strategy going forward, given the change in management team. While FCF could be negative over the next couple of years, Fitch expects liquidity to remain adequate to fund seasonal working capital and pay down near-term debt ($40 million annual term loan amortization, $50 million note due 2019 and $110 million due 2020). The company should end up with close to $2 billion in liquidity at the end of 2018 and $1.5 billion...
