S&P revises HT view to stable

Standard & Poor's said it revised its outlook on HT Intermediate Holdings Corp., the parent of Hot Topic Inc., to stable from negative.

At the same time, the agency affirmed its B corporate credit rating on the company.

Concurrently, S&P affirmed its B issue-level and a 4 recovery rating on Hot Topic's $355 million senior secured notes and its CCC+ issue-level rating and 6 recovery rating on HT Intermediate's $110 million senior pay-in-kind (PIK) toggle notes.

"The outlook revision reflects our expectation that the company's successful execution of its growth in the underpenetrated plus-size segment of the retail space will propel profit growth and modest improvement of credit protection measures," S&P credit analyst Mariola Borysiak said in a news release.

"Our business risk assessment incorporates our view of the company's participation in the highly competitive and widely fragmented specialty apparel retail industry. Although the company has national presence, it is much smaller than many of its specialty apparel peers."

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