S&P lifts Maidenform

Standard & Poor's said it raised its corporate credit rating on Maidenform Brands Inc. to BB- from B+.

At the same time, S&P said it raised its rating on Maidenform's secured bank loan to BB+ from BB and affirmed the 1 recovery rating, indicating expectations of very high recovery in the event of a payment default.

The outlook is stable.

The upgrade reflects Maidenform's improving trend in revenues, margins, and credit protection measures - in particular, debt leverage, which improved to 2.2x at March 31, 2007, from a high of 3.4x at fiscal year-end December 2004, the agency said.

The ratings on Maidenform reflect its participation in a highly competitive and very promotional retail environment, its relatively small size in the intimate apparel sector, its narrow product focus and some customer concentration, S&P noted.

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