S&P ups Chinos Intermediate 2

S&P said it raised all its ratings on Chinos Intermediate 2 LLC, including its $400 million senior secured loan to B from B-. The recovery rating remains 3, indicating 50%-70% recovery (rounded estimate: 60%) in default.

“Revenues for the first nine months of 2021 were up 27% and the adjusted EBITDA margin was 19% (compared to negative last year). Chinos benefited from higher full price selling, sales leveraging and cost reductions executed during the company's 2020 bankruptcy.

“We expect consumers to continue spending on Chinos' apparel lines, supported by consumer spending trends and new branding initiatives at both of Chinos' banners. Reducing threats from Covid-19 and the variants along with increased consumer mobility and spending also support our performance expectations for the near term,” S&P said in a press release.

The outlook is stable.

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