S&P Downgrades Borders Group Shares On Weak Sales

NEW YORK (AP) — Standard & Poor's Equity Research on Wednesday downgraded shares of bookseller Borders Group Inc. to "Sell" from "Hold" on concerns about the company's weak sales and cash position.

Borders reported Tuesday that its quarterly loss widened on weak sales. While cost-cuts have helped soften the blow to the bottom line, S&P analyst Michael Souers noted that a 13.5 percent same-store sales decline is indicative of struggles book retailers are facing as well as the continued weak macroenvironment.

S&P also raised its target price by $1 to $2. ...