Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers H > Headlines for Harry & David Holdings Inc. > News item |
S&P drops Harry & David
Standard & Poor's said it lowered its corporate credit rating on Harry & David Operations Corp. to B- from B.
The agency said it also lowered the rating on the company's $175 million senior fixed-rate notes and $70 million senior floating-rate notes to CCC+ from B-, adding that the recovery rating on these notes remains at 5.
The outlook is stable.
S&P noted that the rating action is based on Harry & David's continued weaker-than-expected operating performance, its belief that the company will remain challenged by the soft U.S. economy, and the likelihood that credit metrics will deteriorate in coming quarters.
According to the agency, the ratings on Harry & David reflect the company's participation in the intensely competitive and fragmented specialty food and gift direct marketing and retailing businesses, very high seasonality of its operations, highly leveraged capital structure, thin cash flow measures, and its belief that weak operating trends will continue.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.