S&P cuts Kellwood

Standard & Poor's said it lowered Kellwood Co.'s corporate credit rating to B+ from BB- and removed the ratings from CreditWatch, where they were placed with negative implications on Sept. 19 and subsequently withdrew the ratings.

The actions follow the completion of Sun Capital Securities LLC's tender offer to Kellwood's shareholders, according to the agency.

The initial watch followed Kellwood's receipt of an unsolicited bid from Sun Capital to buy the company. Ratings were subsequently lowered on Oct. 17, the agency said, reflecting weak underlying business trends and the tougher operating environment in retail, as well as weakening credit protection measures.

S&P said the downgrade reflects the challenging retail environment, the company's weak credit metrics that have continued to decline from historical levels and expectation that the company will pursue a more aggressive financial policy going forward.

Leverage has remained at between 4.5 times and 4.8 times in the past several years.

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