S&P: Claire’s Stores view now negative

Standard & Poor’s said it revised its outlook on Claire’s Stores Inc. to negative from stable. At the same time, S&P affirmed the B- corporate credit rating on the company and the issue-level ratings on the company’s debt instruments.

“Our rating action reflects our expectation that the company’s performance will remain challenged at least through the first half of 2014, reflecting weak consumer confidence and declining mall traffic,” said S&P credit analyst Mariola Borysiak in a news release. “We think this will lead to ongoing use of the bank facility to fund cash use.”

S&P: Tempel Steel view stable

Standard & Poor’s said it revised its outlook on the CCC+ corporate rating on Tempel Steel Co. to stable from negative and affirmed the ratings on the company, including the corporate credit rating and issue-level rating. The recovery rating on the debt issue remains unchanged.

“The outlook revision reflects the company’s recent covenant-lite revolver refinancing, which alleviated liquidity pressure from limited covenant headroom,” said S&P credit analyst Carol Hom in a news release.

“The facility is currently undrawn. Still, the company’s extended revolving credit facility and outstanding notes mature in mid-2016, which exposes the company to refinancing risk if operating performance deteriorates, given weak credit measures.”

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