Moody's changes WH outlook to negative

Moody's Ratings said it changed WH Intermediate, LLC's outlook to negative from stable and affirmed the company's B2 corporate family rating and B2-PD probability of default rating. At the same time, the agency also changed the outlook to negative for WH Intermediate's subsidiary, WH Borrower, LLC (together WHP) and affirmed the B2 ratings on WH Borrower's senior secured first-lien bank credit facilities.

The agency noted that one WHP’s largest licensees Express, Inc. filed for bankruptcy under Chapter 11 on Monday. Express reported it had received a non-binding letter of intent from a consortium led by WHP Global for the potential sale of a substantial majority of the company’s retail stores and operations.

WHP has not yet disclosed the mechanisms by which the sale, if consummated, will be structured or funded, and the outcome of Express' restructuring is uncertain, Moody’s said.

“Express' bankruptcy highlights the risks related to having meaningful brand and licensee concentrations. Also, the difficult consumer environment remains a concern as discretionary spending continues to face headwinds from ongoing inflation of essentials,” Moody’s said in a press release.

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