S&P cuts Cluett American outlook to negative

Standard & Poor's said it revised its outlook on Cluett American Corp. to negative from stable.

At the same time, S&P said it affirmed its ratings on the company, including its CCC+ corporate credit rating.

The outlook revision reflects Cluett's very weak credit protection measures, high debt leverage and our concern that the company's financial metrics will likely remain weak, S&P said.

The agency added that the ratings on Cluett reflect the company's very high leverage, narrow business product portfolio, competitive market conditions, seasonality of sales and its lack of meaningful cash flow generation.

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