Moody's rates Maidenform loans Ba2

Moody's Investors Service said it assigned Ba2 (LGD2, 29%) ratings to Maidenform Brands, Inc.'s new senior secured $50 million revolving credit facility and $100 million term loan and affirmed the company's corporate family rating at Ba3 and its probability-of-default rating at B1.

The outlook is stable.

The proceeds of the new loans will be used to refinance the company's existing senior secured revolver and term loan.

The agency said Maidenform's Ba3 corporate family rating reflects the company's well-known brands and product innovations, improving channel diversity with penetration into the mass market and financial metrics that are strong for the current rating.

The ratings are constrained by Maidenform's lack of scale in revenue while operating primarily in the highly competitive and commoditized intimate apparel segment, the agency said.

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