S&P lifts Guess?

Standard & Poor's said it raised its ratings on Guess? Inc. to BB from BB-.

The outlook is positive.

The agency said that the upgrade follows the announcement that Guess? Royalty Finance LLC, an indirect wholly owned subsidiary of Guess?, will redeem all of the outstanding 6.75% secured notes due 2012, plus accrued and unpaid interest and a redemption premium, for cash on Dec. 20.

The upgrade also reflects Guess?' improved operating performance in the past three years and increased geographic diversity, the agency added, noting that the ratings on Guess? reflect the inherent volatility of the apparel industry, the company's highly competitive market segment and the fashion sensitivity of its core market.

Offsetting these risks are the company's well-recognized brand name, improving operating results, strengthening credit protection measures and geographic diversity, the agency said.

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