"Fitch Downgrades RadioShack's IDR to 'CC'" $RSH

• The downgrade reflects the increasing likelihood that RadioShack will need to restructure its debt within the next 12 months.
• In Fitch's view, closing fewer stores will be a drag on profitability and, more significantly, free cash flow, as it will not provide much needed funds from inventory liquidation
• As a result, RadioShack will have to tap its revolver during 2014 to finance operating losses and a seasonal working capital swing of $100 million to $150 million.
• The $325 million of senior unsecured notes due in May 2019 are rated 'C/RR6', reflecting poor recovery prospects (0% - 10%).