Fitch Expects to Rate Best Buy's $500MM Notes 'BBB+'; Outlook Stable

NEW YORK--(Business Wire)--
Fitch Ratings expects to assign a rating of 'BBB+' to Best Buy
Co., Inc.'s (Best Buy) proposed $500 million senior unsecured notes
due 2013. The proceeds from the offering will be used to finance a
portion of the purchase price of the acquisition of 50% of The
Carphone Warehouse Group PLC's (CPW) retail business. The Rating
Outlook is Stable.

The rating reflects Best Buy's leading market position and
successful customer-driven operating strategy, which have
differentiated the company from its competitors and produced solid
operating results and credit metrics. For the last 12 months (LTM)
ending May 31, 2008, adjusted debt/operating EBITDAR and EBITDAR
coverage of interest and rents were 2.1 times (x) and 4.2x,
respectively. While Fitch anticipates the CPW acquisition will
increase Best Buy's leverage in the near term, the company's solid
operating performance should result in credit metrics improving over
time. In addition, Fitch expects the company will remain prudent in
its financial management and does not expect Best Buy to repurchase
any shares in fiscal 2009.

These positives are balanced by the intense competition in the
consumer electronics sector as discounters expand their consumer
electronics offerings at low prices and other consumer electronics
retailers implement similar operating strategies. In addition, the
company remains vulnerable to changes in technology trends and
consumer spending. However, customer-centricity programs, productivity
initiatives, and solid vendor relationships should enable the company
to remain competitive.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings
Tiffany Co, +1-312-368-3185 (Chicago)
Karen Ghaffari, CFA, CPA, +1-212-908-0708 (New York)
Sandro Scenga, +1-212-908-0278
(Media Relations, New York)

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