S&P cuts Slap Shot view to negative

Standard & Poor’s said it affirmed its B- corporate credit rating on Slap Shot Holdings and subsidiaries (d/b/a Sports Authority) and revised the outlook to negative from stable.

At the same time, S&P affirmed the B- issue-level rating on the company’s first-lien term loan due 2017. The recovery rating is 3, indicating expectations for meaningful recovery in the event of default, at the lower end of the 50% to 70% range.

“We view Sports Authority’s market position as good, yet small in the mature, fragmented and highly competitive retail sporting goods industry. Dick's Sporting Goods is Sports Authority's main direct competitor, offering a similar merchandise mix in a big-box format,” said S&P credit analyst George Skoufis in a news release.

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