S&P: Genesco loan recovery up to 2, outlook to stable

Standard & Poor's said it revised its outlook on Genesco Inc. to stable from negative.

S&P said the outlook change reflects Genesco's good operating performance in the fiscal year ended Jan 29, resulting in a recovery of credit protection measures to levels more consistent with the rating.

In addition, S&P said it expects that Genesco's operating performance will be supported by a more diversified business profile following the successful integration of Hat World.

At the same time, the recovery rating on Genesco's $175 million secured credit facility was raised to 2 from 3 because of the declining balance of outstanding bank debt.

All other ratings on the company, including the BB- corporate credit rating, BB- secured bank loan rating and B subordinated debt rating, were affirmed.

Lease-adjusted total debt to EBITDA improved to about 3.6x and EBITDA interest coverage increased to about 3.0x for the fiscal year, compared with pro forma total debt to EBITDA in the mid 4x area and EBITDA interest coverage in the mid 2x area following the partly debt-financed Hat World acquisition.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.