S&P cuts G+G Retail to D

Standard & Poor's said it lowered its ratings on G+G Retail Inc. to D from CC.

S&P said the downgrade follows G+G's announcement that it has completed a debt restructuring transaction in which all of the company's outstanding 11% senior notes due 2006 and outstanding preferred stock of G&G Holdings were exchanged for new common stock of the company.

S&P said it views the debt restructuring transaction as detrimental to debtholders because terms of the exchange call for bondholders to receive patently less than par value. As of Nov. 1, 2003, G+G had about $111 million of funded debt outstanding.

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