Moody's upgrades Dillard's rating

New York City Credit rating agency Moody's Investors Service on Monday upgraded its rating for the probability Dillard's will default and changed its outlook on the company to "stable" from "negative."

The changes reflect improvement in Dillard's operating performance and credit profile, Moody's said.

Earlier this month, Dillard's reported a fiscal fourth-quarter profit on lower costs and leaner inventory. Its sales dropped 10% to $1.83 billion.