S&P ups Quiksilver

Standard & Poor's said it raised the corporate credit rating on Quiksilver, Inc. to B from B-, along with its existing senior unsecured notes to CCC+ from CCC. The recovery rating remains 6, indicating 0% to 10% recovery in a default. The ratings were removed from CreditWatch positive, where they were placed in August.

The outlook is stable.

The agency said it assigned a B rating and 3 recovery rating, indicating 50% to 70% recovery, to the proposed new euro senior unsecured notes.

The upgrade reflects the company's improved credit metrics after its debt-for-equity exchange and improved liquidity due to looser covenants and sufficient covenant cushion upon completion of the proposed €200 million senior unsecured notes issue, S&P said.

The ratings reflect a view that the company has a vulnerable business risk profile due to its exposure to the cyclical apparel industry, relatively narrow niche focus, the fashion risk inherent in its target market and continued restrained retail consumer spending, the agency said.

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