Fitch puts 361 Degrees on watch

Fitch Ratings said it placed 361 Degrees International Ltd.'s BB long-term issuer default rating and senior unsecured rating on Rating Watch negative.

The BB rating on the company's $400 million 7¼% senior notes due 2021 also were placed on Rating Watch negative.

The negative watch follows the company's recent profit warning in which it said net profit after tax for 2018 decreased due to weaker revenue and increased investments in its core brand, Fitch explained.

The negative watch also considers the exchange loss due to the depreciation of the yuan against the U.S. dollar, the agency said, and a substantial loss in its e-commerce business.

Fitch said it will conduct a review of the ratings after the company announces its financial results in March 2019.

The company's disclosure of a decrease in its order book for 2018 as part of the profit warning is worse than expectations, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.