S&P gives B to Twin-Set CCR, notes

Standard & Poor's said it assigned a B long-term corporate credit rating to Twin-Set Simona Barbieri SpA.

The outlook is positive.

At the same time, the agency assigned a B long-term issue rating to Twin-Set's €150 million senior secured notes. The recovery rating is 3, indicating an expectation of "significant" (50%-70%) recovery for creditors in the event of a payment default.

S&P said the ratings reflect its view of Twin-Set's "aggressive" financial risk profile and "weak" business risk profile, as criteria define the terms. The agency combines these factors to derive an anchor of b+.

The rating incorporates a one-notch negative adjustment to the anchor for S&P’s "comparable rating analysis," whereby it reviews Twin-Set's credit characteristics in aggregate. The agency said this primarily reflects the view that Twin-Set's business risk profile is constrained by its relatively small size in terms of revenues and retail network; the company has only 52 stores.

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