Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers K > Headlines for Kellwood Co. > News item |
Moody's downgrades Kellwood
Moody's Investors Service said it lowered Kellwood Co.'s corporate family and probability-of-default ratings to Ba3 from Ba2 and its $140 million debentures due 2009 and $130 million debentures due 2017 to B1 (LGD5, 70%) from Ba3 (LGD5, 70%).
This concludes the review for possible downgrade begun on Sept. 10, and the outlook is stable.
The agency said the downgrade was primarily driven by expectations that recovery in credit metrics to levels more appropriate for the Ba2 rating category has become prolonged as sales and margin erosion in the company's heritage women's sportswear businesses have weakened at a more rapid pace than anticipated.
The stable rating outlook reflects the breadth of diversification of the company's businesses, expected maintenance of good near-term liquidity, the anticipated benefits from recent restructuring actions and expectations the company will maintain a balanced acquisition strategy and conservative financial policies consistent with historical levels, Moody's said.
© 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.