Moody's revises Human Touch

Moody's Investors Service said it revised Human Touch's speculative grade liquidity rating to SGL 3 from SGL 4 to reflect the company's stabilized cash flow. Moody's affirmed the issuer's Caa1 corporate family and probability-of-default ratings and its Caa2 (LGD4, 63%) senior unsecured notes.

The outlook remains negative.

"The upgrade in the liquidity rating reflects Moody's view that the company will have adequate liquidity over the next 12 to 18 months, despite our continuing concerns over the company's revised distribution approach with warehouse clubs and big box retailers," Kevin Cassidy, vice president and senior credit officer at Moody's, said in a written statement.

"The negative outlook reflects our continuing concerns over the company's revised distribution approach amid increasing uncertainty about consumer spending, resulting in contracting operating margins," Cassidy said.

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