S&P may up Warnaco

Standard & Poor's said it placed ratings on Warnaco Group Inc. and wholly owned subsidiary Warnaco Inc. on CreditWatch with positive implications.

Warnaco Group has a BB corporate credit rating and Warnaco Inc. has a BBB- rating for its senior secured bank loan with 1 recovery rating and a BB rating for its senior unsecured notes with a 4 recovery rating.

The possible upgrade follows the company's first-quarter earnings, which indicated a continuation of positive operating momentum for the past several fiscal quarters, S&P said.

Warnaco's sustained improvement in operating performance led the company to trim leverage to 2.1 times for the fiscal year ended December, from 3.1 times a year ago, the agency said.

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