S&P lowers Kellwood

Standard & Poor's said it lowered its long-term corporate credit rating on Kellwood Co. to BB- from BB.

At the same time, S&P said it lowered the senior unsecured debt rating to BB- from BB.

The ratings remain on CreditWatch, where they were placed with negative implications on Sept. 19, following Kellwood's announcement that it received a nonbinding, unsolicited proposal from Sun Capital Securities Group LLC indicating interest in acquiring all of Kellwood's outstanding shares, the agency said.

S&P added that the downgrade reflects the company's continued weak underlying business trends and the tougher operating environment at retail, as well as credit measures that are weak for the BB rating while Kellwood continues to struggle with it women's businesses, which account for over 50% of annual revenues, while its men's Smart Shirts operations encountered operating inefficiencies during the quarter ended Aug. 4.

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