Sunday, May 4, 2008

Claire's Stores Inc. Downgraded To 'B-' After Last Year's Poor Performance

NEW YORK, NY--Standard & Poor's Ratings Services has lowered its corporate credit rating on Pembroke Pines, Fla.-based Claire's Stores Inc. to 'B-' from 'B'.

At the same time, we lowered the ratings on the company's $1.65 billion senior secured credit facilities to 'B' from 'B+', its $600 million senior unsecured notes to 'CCC+' from 'B-', and its $335 million senior subordinated notes to 'CCC' from 'CCC+'. The outlook is negative.

"The downgrade reflects the poor performance over the past year, which was well below our expectations," said Standard & Poor's credit analyst David Kuntz. Claire's credit protection profile weakened modestly concurrently with the deterioration of operations.
Media Contact:
David Wargin, New York, (1) 212-438-1579, david_wargin@standardandpoors.com
Analyst Contact:
David M Kuntz, New York, (1) 212-438-5022

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