S&P lowers Coach America

Standard & Poor's said it lowered its corporate credit rating on Coach America Holdings Inc. to B- from B.

At the same time, S&P said it lowered the senior secured debt ratings to B, one notch above the corporate credit rating, while leaving the recovery rating unchanged at 2, indicating expectations of a substantial recovery in the event of a payment default.

At the same time, the agency said it lowered the second-lien credit facility rating to CCC, two notches below the corporate credit rating, while leaving the recovery rating unchanged at 6, indicating expectations of a negligible recovery in the event of a payment default.

All ratings were removed from CreditWatch, where they were placed with negative implications on Oct. 30, S&P noted.

The outlook is now negative.

S&P said that the downgrade reflects Coach America's recent profit pressures and the ratings reflect Coach America's current weak financial performance, highly leveraged capital structure and vulnerability to economic and competitive pressures.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.