S&P rates Warnaco loan BBB-

Standard & Poor's said that it assigned a BBB- issue rating to Warnaco Inc.'s proposed $200 million senior secured term loan due 2018.

Warnaco will use the proceeds from the term loan for general corporate purposes, which includes repayment debt as well as funding of strategic initiatives such as acquisitions or purchasing the company's common stock.

The ratings reflect the company's fair business risk profile given its well-recognized brand names, geographic diversity and good operating performance through the recent recession, the agency said. The ratings also incorporate the company's narrow brand focus, exposure to fashion risk within the highly competitive apparel industry and still-somewhat-weak consumer discretionary spending.

The BBB- corporate credit rating on Warnaco remains unchanged.

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