Fitch cuts Safilo

Fitch Ratings said it has downgraded Safilo SpA's long-term issuer default rating to B- from B.

Fitch said it has simultaneously downgraded Safilo's €400 million senior credit facilities to B+/RR2 from BB-/RR2 and downgraded Safilo Capital International SA's €195 million senior notes due 2013 to CC/RR6 from B-/RR5.

Safilo's short-term issuer default rating is B, the agency said, noting that Safilo's ratings remain on rating watch negative due to continued concerns over its debt repayment schedule and available liquidity.

"The downgrade reflects Safilo's Q109 performance and outlook for the remainder of 2009, as a result of which Safilo's EBITDA and cashflow generation is expected to be at the lower end of Fitch's projected scenarios for 2009, which would place the rating more comfortably at the B- level," said Michelle De Angelis, senior director in Fitch's leveraged finance team.

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