Moody’s rates Shoes for Crews amended facilities Caa1

Moody’s Investors Service said it assigned a Caa1 rating to SHO Holding I Corp.'s (Shoes for Crews) amended first-lien senior secured credit facilities. Moody’s also added an /LD to Shoes for Crews’ probability of default rating making it Caa2-PD/LD.

“Moody's views the company's recent amend and extend transaction as a distressed exchange under its definition of default, as the issuer did not meet its original cash debt service obligations as outlined in their original debt agreement resulting in an economic loss to lenders. The transaction is not a default under the company's credit agreements. Moody's will remove the /LD designation in three business days,” the agency said in a press release.

Moody’s affirmed the Caa2 corporate family rating.

The outlook remains stable.

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