DBRS confirms Golfsmith

DBRS Ltd. said it confirmed the issuer rating of Golf Town Canada Inc. and Golfsmith International Holdings, Inc. at B and the senior secured second-lien notes rating at CCC (high) with a recovery rating of RR6.

The trend remains negative.

DBRS said the continuation of the negative trend reflects near-term liquidity concerns, weakness in the company’s operating performance despite positive signs in same-store sales (on a constant-currency basis) and uncertainty around Golfsmith International’s ability to return earnings and credit metrics to levels considered acceptable for the current issuer rating of B.

DBRS also recognizes the support of the Ontario Municipal Employees Retirement System, evidenced by its pledge of collateral to ensure sufficient liquidity for the company during seasonal periods in 2015.

© 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.