S&P cuts Genesco

Standard & Poor's said it lowered its corporate credit rating on Genesco Inc. to B+ from BB-.

At the same time, the agency said it lowered its issue-level rating on the company's subordinated debt to B- from B.

The company remains on CreditWatch with Developing implications, where it was placed on April 20, 2007, the agency said, noting that the downgrade reflects operating performance which has been below expectations for a few quarters, the increasingly challenging economic environment and considerable uncertainty regarding the acquisition by The Finish Line.

The speculative-grade ratings on Genesco continue to reflect the company's participation in the intensely competitive footwear and headwear retailing industry, its recent challenges at many of its concepts, substantial fashion risk and aggressive capital structure, S&P said.

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