Moody’s cuts Charlotte Russe

Moody's Investors Service said it downgraded the ratings on Charlotte Russe, Inc., including the company's corporate family rating to Ca from Caa1 and probability of default rating to D-PD from Caa1-PD.

In addition, the agency downgraded the ratings for the company's senior secured term loan B facilities due 2019 to Ca from Caa1.

The outlook was changed to stable from negative.

The downgrades follow Charlotte Russe's announcement that it has entered into a debt restructuring agreement with the majority of its lenders, Moody’s said.

The agency said the ratings reflect its best assessment of ultimate expected loss severity for the company's debt given the current event of default scenario.

Moody’s said it will withdraw the ratings given the pending restructuring.

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