S&P cuts Charlotte Russe

Standard & Poor’s said it lowered its corporate credit rating on Charlotte Russe Inc. to B- from B. The outlook is negative.

At the same time, S&P lowered the issue-level rating on the senior secured term loan facility to B- from B. The recovery rating is 4, indicating an expectation for modest recovery in the event of a default, at the lower end of the 30% to 50% range.

“The rating action reflects the company’s continued underperformance throughout fiscal 2015, which resulted in meaningfully negative free operating cash flow for the year,” S&P said in a news release.

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