Target Sells Debt, Gets Upgrade

MARK HAMSTRA

MINNEAPOLIS — Target Corp. said Tuesday it sold $1 billion in 10-year notes in what some analysts said was an encouraging sign for financial markets.

The bonds were priced at 3.91%, or 80 basis points above treasury bonds of similar maturity, according to a Bloomberg report. New York-based Moody's Investors Service said it upped its rating on the retailer to stable, from negative, citing the positive impact on Target's credit metrics of improving retail operations.

"Target has used its growing food business to drive additional foot traffic to its stores, and has capitalized on this traffic with a more value-oriented approach to its merchandising," said Charlie O'Shea, a Moody's analyst, in a report. "The stores have been featuring a better mix of value and fashion, which is clearly resonating with consumers."