S&P lowers Liz Claiborne

Standard & Poor's said it lowered its corporate credit rating on Liz Claiborne Inc. to B- from B.

The outlook is developing.

"The downgrade reflects the continued deterioration in the company's credit metrics and its expectation that they could remain weak in the near term," said S&P credit analyst Linda Phelps.

"In addition, underlying economic conditions and consumer spending remain weak; hence, the company's progress in improving its business could be slow and uneven."

The company needs to refinance its credit facility which matures next year, the agency said, adding that the ratings on Liz Claiborne reflect its highly leveraged financial profile; participation in the highly competitive and inherently cyclical apparel industry; the fashion risk associated with its product portfolio; sourcing concentration; and the still challenging economic and retail environment.

© 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.