S&P ups Collective Brands outlook to stable

Standard & Poor's said it revised its outlook on Collective Brands Inc. to stable from negative.

At the same time, the agency said it affirmed all other ratings on the company, including the B+ corporate credit rating.

The agency added that the outlook revision reflects the announcement that the monetary award against Collective Brands in the adidas trademark infringement case has been reduced to $65.3 million from $305 million.

The reduction in the adidas judgment lowers the pro forma debt to EBITDA ratio to 5.8x from 6.4x for the 12 months ended Aug. 4, the agency said, stating that the ratings on Collective Brands reflect the company's participation in the highly competitive and extremely fragmented footwear industry, acquisition integration risk, legal issues, and high debt leverage.

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