S&P ups Collective Brands loan

Standard & Poor's said that it revised the outlook on Collective Brands Inc. to stable from positive. S&P raised the issue-level rating on the company's senior secured term loan B to BB from BB- and revised the recovery rating on the debt to 1 from 2. The 1 recovery rating indicates very high (90%-100%) recovery.

The outlook revision reflects the recent weak top-line performance and margin erosion, the agency said. The upgrade of the senior secured debt results from significant term loan repayment over the past year.

S&P affirmed all other ratings on the company, including the B+ corporate credit rating.

The ratings on Collective Brands reflect the expectation that there is unlikely to be any meaningful improvement in credit metrics over the next 12 months, the agency added.

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