Fitch cuts Linens 'n Things loans to CCC

Fitch Ratings said it downgraded Linens 'n Things, Inc.'s $700 million asset-based revolving credit facility to CCC+/RR3 from B-/RR2. The agency also placed on Rating Watch negative the CCC issuer default rating, CCC+/RR3 asset-based revolver and CCC-/RR5 senior secured notes.

The downgrade reflects worsening operating performance, which resulted in continued deteriorating credit metrics and negative cash flow generation, the agency said.

In 2007, the issuer's total adjusted debt-to-EBITDAR ratio was 12.5 times compared with 8.6 times in 2006.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.