Moody's lifts Warnaco loan

Moody's Investors Service said it upgraded Warnaco Inc. and Warnaco of Canada Co.'s asset-based revolving credit facilities to Baa1 from Baa2.

Warnaco Inc. and Warnaco of Canada Co. are wholly owned subsidiaries of the Warnaco Group, Inc.

All other ratings, including Warnaco's Ba1 corporate family and probability of default ratings, were affirmed.

The outlook remains stable.

The upgrade and affirmations conclude a review for possible upgrade that began on June 6, Moody's said.

The upgrade reflects the additional loss absorption available for these facilities following the closing of the company's $200 million term loan B, Moody's said.

The ratings also consider the group's solid market position, strong credit metrics and good liquidity, as well as broad channel diversification, the agency said.

The ratings are constrained by its narrow product focus, high concentration on the reputation and image of the Calvin Klein brand and a susceptibility to weakness in discretionary consumer spending inherent in the apparel industry, Moody's added.

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