Moody’s downgrades TOMS Shoes, loan to B3

Moody's Investors Service said it downgraded the ratings of TOMS Shoes, LLC, including the corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD and senior secured term loan rating to B3 from B2.

The outlook is negative.

Moody’s said the downgrade reflects the company's negative free cash flow generation and weakened credit protection metrics. Since the late 2014 leveraged buyout, TOMS has made progress in diversifying its product line outside the core alpargata shoe. However, EBITDA (including add-backs for items that Moody's considers non-recurring) is declining over the prior year as a result of higher spending to support and grow the business, channel mix shift and foreign currency pressure.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.