Fitch downgrades New Look, notes

Fitch Ratings said it resolved and removed the rating watch negative and downgraded New Look Retail Group Ltd.'s long-term issuer default rating to CCC from B-.

The agency also downgraded New Look Secured Issuer plc's 2022 senior secured notes to CCC/RR4 from B/RR3 and New Look Senior Issuer plc's 2023 senior notes to CC/RR6 from CCC/RR6.

Fitch said the downgrades reflect New Look's deteriorating operating performance in both FY17 (ending March 25, 2017) and in Q1FY18. The competitive threat from pure online retailers, falling U.K. consumer confidence, some loss of fashion trendsetter status, rising input prices following the fall in sterling and Brexit uncertainty has placed the business model under pressure, the agency noted.

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