What: Standard & Poors Global Ratings raised its outlook for Macy's from negative to positive, signalling that the retailer could get an upgrade from its current B+ credit rating in the coming months.

Why is it important: Encouraging signs of an accelerating economic recovery are emerging, and operating conditions for apparel retailers are fast improving.

Over the course of 2020, Macy's was downgraded by S&P multiple times. About a year ago, when S&P lowered Macy's rating to B+, analysts with the agency said that more downgrades could come if sales and profits remain depressed from a prolonged pandemic or macroeconomic slump.

In 2021, along with vaccines, multiple rounds of federal stimulus have lifted consumer spending. S&P's noted that Macy's, as digital sales expanded, boosted its omnichannel capabilities during the year. The analysts also noted that Macy's picked up new customers as competitors J.C. Penney and Belk filed for bankruptcy, giving the retailer an opportunity to expand its market share, especially in digital shopping.

S&P turns positive on Macy's as apparel, economy gain steam