Moody's lowers Escada PDR to D

Moody's Investors Service said it downgraded Escada AG's probability-of-default rating to D from Ca. The corporate family rating and senior unsecured rating on the €200 million notes due 2012 are unchanged at Ca.

The outlook is stable.

Moody's said the downgrade of the probability-of-default rating reflects the failure of the company's proposed exchange offer for the notes and its subsequent filing of an insolvency petition with the competent insolvency court under German law. The exchange offer required a minimum acceptance level of 80%.

The company's decision follows the operating difficulties that it has been facing due to adverse market condition and soft consumer spending, Moody's said.

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