S&P changes G-III Apparel view

S&P said it revised its outlook on G-III Apparel Group Ltd. to positive from stable and affirmed its BB- corporate credit rating.

At the same time, the agency affirmed the BB issue-level rating on the company's $350 million first-lien term loan. The 2 recovery rating remains, indicating an expectation that investors will receive substantial (70%-90%; rounded estimate: 80%) recovery in the event of a payment default.

S&P said the positive outlook reflects that it could raise its rating on G-III if it sustains its recent operational improvement and reduces its leverage to the low-2x area in the next 12 months, which represents a significant improvement from the agency’s previous expectation for around 3x.

“G-III outperformed our expectations on strong growth in its wholesale segment, which was led by double-digit percent revenue increases from the Calvin Klein and Tommy Hilfiger brands,” the agency said in a news release.

© 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.