Moody's turns PrestigeBidco view to positive

Moody's Investors Service said it changed to positive from stable the outlook on the ratings of PrestigeBidCo GmbH (S&B), the holding company owner of Schustermann & Borenstein.

"Our decision to change S&B's outlook to positive reflects the company's strong positioning in the rating category and our expectations of continued sales and earnings growth in the next 12-18 months, supported by increasing online penetration in the European fashion segment," said Guillaume Leglise, a Moody's vice president, senior analyst and analyst for S&B, in a press release.

"While there is still some uncertainty regarding the sponsor-owner financial policy, which has been untested since the 2016 leveraged buyout, the positive outlook assumes that the company will maintain good liquidity and will continue to favor the growth of the business, with sustained capital spending, as seen in the last two years," Leglise added.

Concurrently, Moody's affirmed the company's B2 corporate family rating, its B2-PD probability of default rating and the B2 rating of the €260 million of guaranteed senior secured notes due December 2023 issued by the company.

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