S&P rates Everest Holdings loan B-

Standard & Poor's said it assigned its B- corporate credit rating to Everest Holdings LLC d/b/a Eddie Bauer.

The outlook is positive.

At the same time, the agency assigned a B- issue-level rating (the same as the corporate credit rating) and 3 recovery rating to the company's proposed $250 million term loan. The 3 recovery rating indicates an expectation for meaningful (50% to 70%) recovery in the event of payment default.

"The ratings on Eddie Bauer reflect our assessment of its 'vulnerable' business risk profile and highly leveraged' financial risk profile. The business risk profile incorporates our view of the company's participation in the highly competitive and widely fragmented specialty apparel industry," S&P credit analyst Kristina Koltunicki said in a news release.

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