Moody's lowers Escada

Moody's Investors Service said it has downgraded the corporate family rating, the probability default rating of Escada AG and the senior unsecured rating on the €200 million notes due 2012 to Caa2 from B3.

The outlook remains negative.

"The further ratings downgrade follows the company's announcement of key preliminary figures for FYE October 2008 and Moody's view that the current operating performances, in conjunction with ongoing pressure in the market, are not seen as sustainable and are likely to add pressure on the liquidity profile of the company," said Paolo Leschiutta, a senior analyst - vice president at Moody's and responsible for Escada.

The agency said that FYE October 2008 results showed additional deterioration in operating performances compared to the third EBITDA revision guidance provided to the market earlier in the year as trading in October was particularly difficult.

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