S&P ups Charlotte Russe view to positive

Standard & Poor’s said it revised its outlook on Charlotte Russe Inc. to positive from stable and affirmed all ratings, including the B corporate credit rating.

“The outlook revision reflects the company’s lower debt levels following the redemption of a portion of preferred stock issues that we treated as debt,” said S&P credit analyst Tobias Crabtree in a news release. “We believe continued revenue and EBITDA gains along with lower debt levels could lead to improvements in credit measures over the next several quarters.

“The company’s financial sponsor ownership, potential for additional debt-financed dividends, and a cautious consumer outlook tempers an upgrade at this time.”

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