Moody’s cuts Charming Charlie, loan to B3

Moody's Investors Service said it downgraded Charming Charlie LLC's corporate family rating and $150 million senior secured term loan rating to B3 from B2 and the probability of default rating to B3-PD.

The outlook was changed to negative.

Moody’s said the downgrade was based on Charming Charlie's weak operating performance over the year-to-date period, including accelerated declines in same store sales in the double-digit range as well as lower gross and EBITDA margins.

The action also reflects the agency’s expectation that credit metrics will weaken over the near-term as the company works to correct these execution issues in a challenging operating environment.

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