S&P changes HT Intermediate to stable

S&P said it revised the outlook on HT Intermediate Holdings Corp. to stable from positive and affirmed all ratings, including the B corporate credit rating.

The agency also affirmed the B issue-level rating on the secured notes. The 3 recovery rating is unchanged and indicates expectations for moderate (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.

S&P said the outlook revision reflects its expectation for weaker operating performance in fiscal 2017 resulting from excess inventory and merchandise missteps leading to sharp traffic declines and increased markdowns in the first quarter.

The agency expects operating performance to continue to be challenged in the second quarter, and then begin to stabilize in the second half of the year.

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