S&P keeps Genesco on developing watch

Standard & Poor's said it said its ratings on Genesco Inc., including the BB- corporate credit rating, remain on CreditWatch with developing implications, following the announcement this morning that it has rejected Foot Locker Inc.'s (BB+/Watch negative) conditional bid to acquire Genesco for $1.3 billion, or $51.00 per share, in cash.

The board of directors and management have stated that they will evaluate available alternatives and determine the course of action they believe is in the best interests of all its shareholders, the agency said.

If a transaction with Foot Locker is subsequently completed, S&P said that the company's rating would be the same as that on Foot Locker.

If Genesco embarks upon material shareholder-friendly initiatives, S&P said it could lower its rating.

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