Fitch lowers Limited notes to BB

Fitch Ratings said it downgraded Limited Brands, Inc.'s unsecured notes to BB from BB+. The BB+ long-term issuer default rating, bank credit facility and term loan and the B short-term issuer default rating and commercial paper remain unchanged.

The outlook is negative.

The agency said the downgrade follows the company's announcement that it has amended its existing bank credit agreements and reflects the lower-priority status of the unsecured notes relative to the secured revolving credit facility and term loan, which are now secured with guarantees from material domestic subsidiaries.

The ratings continue to balance Limited's leading market position in intimate apparel, strong brands and solid cash flow generation against the challenging operating environment, increasingly competitive industry and Limited's weaker operating performance and credit metrics, Fitch said.

The negative outlook reflects the potential for prolonged weakness in same-store sales, worsening credit metrics and management's discipline with regards to share repurchases, the agency said.

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