Moody's cuts, affirms Brookstone

Moody's Investors Service said it downgraded Brookstone Inc.'s probability-of-default rating to Ca from Caa2 and affirmed its corporate family rating of Caa2.

The outlook is negative

The company's short-term liquidity assessment remains unchanged at SGL-4 and has $170 million 12% second-lien senior secured notes due 2012 rated Caa3 (LGD3, 30% from LGD5, 73%).

The downgrade reflects the company's plans to exchange its 12% second-lien secured notes due 2012 at a discount, which is considered a distressed exchange, according to the agency.

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