Moody's: Collective Brands view negative

Moody's Investors Service said it revised the outlook for Collective Brands, Inc. to negative from stable and affirmed its corporate family and probability-of-default ratings at B1 and $200 million senior subordinated notes due 2013 at B3 (LGD6, 94%).

The agency also affirmed Collective Brands Finance Inc.'s $725 million secured term loan B due 2014 at B1 (LGD3, 43% from LGD3, 42%).

"The negative outlook reflects uncertainties resulting from the announcement that a jury verdict of approximately $305 million was rendered against Collective Brands," Moody's senior analyst Scott Tuhy said in a written statement.

The verdict relates to a lawsuit filed by adidas Americas Inc. in connection with alleged trademark infringement amongst other items.

© 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.