Moody's affirms David's Bridal

Moody's Investors Service said it affirmed David's Bridal, Inc.'s B2 corporate family and probability-of-default ratings and B2 (LGD3, 44%) senior secured term loan.

The outlook is stable.

The agency said the ratings reflect David's leading position in the bridal sub-sector of retail, relatively stable profitability, nationally diversified retail store base and good liquidity. Weak economic conditions have led to reduced spending on weddings and wedding-related goods, but this niche remains relatively recession resistant, and its long-term industry fundamentals remain favorable, Moody's said.

David's weak consolidated credit metrics, high seasonality and small scale relative to other global retailers remain significant rating constraints, in the agency's view.

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