S&P lowers Liz Claiborne

Standard & Poor's said it lowered its long-term corporate credit and unsecured debt ratings on Liz Claiborne Inc. to BB+ from BBB.

At the same time, the agency said it lowered its short-term corporate credit and commercial paper ratings on the company to B-2 from A-3 and removed all ratings from CreditWatch, where they were placed with negative implications on May 14, following weak first quarter results for the period ended April 5.

In addition, the agency said it assigned a 3 recovery rating to Liz Claiborne's $750 million senior unsecured revolving credit facility, indicating the expectation for meaningful recovery in the event of a payment default.

Also, the agency said it assigned a 4 recovery rating to the company's €350 million 5% notes due 2013, indicating the expectation of average in the event of a payment default.

The outlook is stable.

According to S&P, the downgrade reflects the company's much weaker-than-expected credit measures for the 12 months ended April 5.

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