Moody’s shifts Cole Haan view to negative

Moody’s Investors Service said it changed Calceus Acquisition, Inc.’s (Cole Haan) outlook to negative from stable. Concurrently, Moody’s affirmed the company’s B1 corporate family rating, B1-PD probability of default rating, and B1 senior secured term loan rating.

The outlook change reflects the risk credit metrics could weaken for a prolonged period as a result of lower discretionary consumer spending and high promotional activity in the apparel and footwear sector as a result of the coronavirus, the agency said.

“The negative outlook also reflects the risk that liquidity will decline more than anticipated as a result of an extended period of store closures or weaker than expected earnings,” Moody’s said in a press release.

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