Moody's may cut Kellwood

Moody's Investors Service said it placed all ratings of Kellwood Co. under review for a possible downgrade, noting that LGD assessments are subject to change.

The review for downgrade follows Kellwood's announcement that it intends to remove all impediments to the $21.00 per share tender offer made by an affiliate of Sun Capital Securities Corp. so that the tender offer can be consummated on Feb. 12 if a majority of the shares are tendered, the agency said.

According to Moody's, the company has also stated that its financial advisors will approach third parties to seek an alternative transaction with a value above $21.00 per share.

Affected ratings include Kellwood's corporate family rating at Ba3, probability of default rating at Ba3, $140 million senior unsecured debentures due July 15, 2009 at B1 and $130 million senior unsecured debentures due October 15, 2017 at B1.

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