Fitch lowers Linens 'n Things

Fitch Ratings said it downgraded its ratings on Linens 'n Things, Inc. as follows: issuer default rating to CCC from B-, asset-based revolver to B-/RR2 from B+/RR2 and senior secured notes to CCC-/RR5 from CCC/RR6.

The outlook is stable.

Fitch said that the downgrades reflect Linens 'n Things's continued weak operating performance which has resulted in worsening credit metrics and negative cash flow generation as well as the challenging operating environment and intense competition from other specialty retailers, discounters and department stores in the home furnishings segment.

As a result, the company is dependent on favorable business and market conditions to meet its financial commitments as it carries out the lengthy process of re-positioning the business, the agency said.

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