S&P: Mothers Work outlook negative

Standard & Poor's said it revised its outlook on Mothers Work Inc. to negative from stable. Ratings on the retailer, including the B+ corporate credit rating, BB- secured bank loan rating, and B+ senior unsecured debt rating, were affirmed.

S&P said the outlook revision is based on concerns over recent weak sales trends and S&P's expectation that credit protection measures are likely to be meaningfully weaker than previously anticipated given the increased competitive pressure.

The ratings reflect the high business risk associated with the company's participation in the narrowly defined maternity segment of the apparel retailing industry, high debt leverage, and the company's relatively small size. These risks are partly offset by the company's position as the largest specialty maternity apparel retailer in the country, adequate liquidity, and relatively stable demand for maternity apparel driven by the stable birth rate in the United States, S&P said.

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