...EBITDA Materially Negative: Fitch Ratings expects Sears Holdings Corporation (Sears or Holdings) EBITDA -- after deconsolidating Sears Canada -- to be negative $850 million¡ negative $900 million in 2014 and potentially worse in 2015. Fitch expects a revenue decline of around 9%¡10% in 2014 due to estimated domestic comparable store sales (comps) of negative 1%, the spinoff of Lands' End business and ongoing store closings. Fitch expects comps could be modestly negative in 2015 and 2016. Significant Cash Burn: Sears' interest expense, capex and pension plan contributions are expected to total $900 million¡$1 billion annually between 2014 and 2016. Netting this amount from Fitch's EBITDA expectation, and assuming $400 million¡$500 million in net working capital benefit, leads to cash burn (CFO after capex and pension contributions) of $1.3 billion in 2014. Cash burn could potentially worsen in 2015, assuming EBITDA losses exceed $1 billion. Sears also needs an estimated $500 million¡$700...
