S&P upgrades Charlotte Russe

Standard & Poor's said it raised its corporate credit rating on Charlotte Russe Inc. to B+ from B.

The outlook is stable.

At the same time, the agency raised the issue-level rating on the senior secured term loan facility to B+ from B. The recovery rating on the term loan remains 4, indicating expectations for average recovery (30%-50%) in the event of a default.

"The rating action reflects our expectation for continued lower debt levels and credit metrics that will remain relatively stable over the next 12 months, driven by our anticipation of continued somewhat moderated financial policies along with good operating performance," S&P credit analyst Helena Song said in a news release. "We are projecting modest same-store sales and margin gains in 2015."

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