Fitch has assigned a rating of 'BB+' to Kmart Corporation's $400m issue of 9.375 per cent senior notes due February 2006. The proceeds will be used for general corporate purposes. The rating outlook is stable. The rating reflects Kmart's weak credit measures and the expectation for improvement as the company makes progress in implementing its strategic actions announced in July 2000. These actions are designed to improve the company's return on investment by closing 69 underperforming stores and accelerating inventory reductions.