Moody's rates Cole Haan loan B2

Moody's Investors Service said it upgraded Calceus Acquisition, Inc.'s (Cole Haan) corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD.

Moody's also said it assigned a B2 rating to the company's proposed $290 million senior secured first-lien term loan due 2025.

The ratings on the existing term loan due 2020 were upgraded to B2 from B3, and will be withdrawn upon close of the transaction.

The outlook is stable.

The proceeds will be used to repay the existing $320 million senior secured first-lien term loan due 2020.

The upgrade reflects the company's continued earnings growth resulting in solid credit metrics, Moody's said, and the improvement in Cole Haan's liquidity following the close of the proposed refinancing.

The ratings also consider Cole Haan's relatively small scale and fashion risk as a mono-brand premium retailer, the agency said.

The ratings also take into account the company's exposure to discretionary spending and operations in the highly competitive and promotional footwear market, Moody's said.

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