S&P lowers Mothers Work

Standard & Poor's said it lowered the corporate credit rating on Mothers Work Inc. to B- from B and the $90 million senior secured term loan to B from B+.

The downgrade reflects ongoing merchandising issues, increased competitive pressures, concerns regarding covenant compliance and overall weak performance, according to S&P.

The outlook is negative.

Ratings reflect the high business risk associated with the company's participation in the narrowly defined and intensely competitive maternity retailing, poor performance and leveraged capital structure that results in thin cash flow protection, the agency said.

For the 12 months ended March 31, the issuer's debt-to-EBITDA ratio rose to 6.4 times from 4.2 times.

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