Moody's: Kellwood view negative

Moody's Investors Service said it affirmed Kellwood Co.'s Ba3 corporate family and probability-of-default ratings and revised the outlook to negative from stable.

Also affirmed are the issuer's B1 ratings (LGD 5, 70%) on the $140 million debentures due July 15, 2009 and $130 million debentures due Oct. 15, 2017.

The negative outlook follows the announcement that an affiliate of Sun Capital Securities Group, LLC has started a tender offer to buy all outstanding shares of Kellwood Co.'s common stock for $21 per share.

Ratings could be downgraded if the tender offer or election of a new slate of directors resulted in a spike in debt or in a material change in the company's operating and financial policies, the agency said.

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