Saks Inc. Downgraded To 'B' On Anticipated Weak Fourth Quarter
NEW YORK, NY--Standard & Poor's Ratings Services has lowered its ratings on New York City-based luxury retailer Saks Inc. to 'B' from 'BB-'. The outlook is stable.
"The rating change reflects our belief that the company will be more challenged than previously expected by the current weak economic environment in the U.S. and the turmoil in the financial markets," explained Standard & Poor's credit analyst Diane Shand.
NEW YORK, NY--Standard & Poor's Ratings Services has lowered its ratings on New York City-based luxury retailer Saks Inc. to 'B' from 'BB-'. The outlook is stable.
"The rating change reflects our belief that the company will be more challenged than previously expected by the current weak economic environment in the U.S. and the turmoil in the financial markets," explained Standard & Poor's credit analyst Diane Shand.
In addition, credit measures will likely deteriorate more than we had originally projected as a result of a deepening spending pull-back by consumers. "Credit measures deteriorated significantly in the third quarter," added Ms. Shand, "and are not likely to begin recovering until the second half of 2009."
Media Contact:
David Wargin, New York (1) 212.438.1579, david_wargin@standardandpoors.com
Analyst Contact: Diane Shand, New York (1) 212.438.7860
Charming Shoppes Inc. Downgraded To 'B-' As Credit Metrics Deteriorate
NEW YORK, NY--Standard & Poor's Ratings Services said today it lowered its corporate credit rating on Bensalem, Pa.-based Charming Shoppes Inc. to 'B-' from 'B.' We also lowered the rating on the company's senior unsecured debt to 'CCC+' from 'B-'. The recovery rating on this debt remains at '5', indicating expectations for modest (10%-30%) recovery of principal in the event of default. The outlook is stable.
"The downgrade is based on continued weak operating trends, which resulted in a sharp deteriora
tion of credit metrics," said Standard & Poor's credit analyst Jackie E. Oberoi. Consumers' pull-back on spending, inadequate levels of new fashion, and company-specific merchandise misses have hurt its business.
(Charming Shoppes' first store (bottom left photo) opened in Philadelphia in 1940)
Media Contact: David Wargin, New York (1) 212.438.1579, david_wargin@standardandpoors.com
Media Contact:
David Wargin, New York (1) 212.438.1579, david_wargin@standardandpoors.com
Analyst Contact: Diane Shand, New York (1) 212.438.7860
Charming Shoppes Inc. Downgraded To 'B-' As Credit Metrics Deteriorate
NEW YORK, NY--Standard & Poor's Ratings Services said today it lowered its corporate credit rating on Bensalem, Pa.-based Charming Shoppes Inc. to 'B-' from 'B.' We also lowered the rating on the company's senior unsecured debt to 'CCC+' from 'B-'. The recovery rating on this debt remains at '5', indicating expectations for modest (10%-30%) recovery of principal in the event of default. The outlook is stable.
"The downgrade is based on continued weak operating trends, which resulted in a sharp deteriora
tion of credit metrics," said Standard & Poor's credit analyst Jackie E. Oberoi. Consumers' pull-back on spending, inadequate levels of new fashion, and company-specific merchandise misses have hurt its business.(Charming Shoppes' first store (bottom left photo) opened in Philadelphia in 1940)
Media Contact: David Wargin, New York (1) 212.438.1579, david_wargin@standardandpoors.com
Analyst Contact: Jackie E Oberoi, New York (1) 212-438-2895
Bath & Beyond Inc.Ratings Unaffected By Announced Third-Quarter Earnings
NEW YORK, NY--Standard & Poor's Ratings Services says Bed Bath & Beyond Inc.'s (BBB/Stable/--) latest earnings announcement has no effect on the company's current credit rating or outlook.
The Union, N.J.-based retailer said that net earnings for the quarter ended Nov. 29, 2008, are now expected to range from 31 cents to 35 cents a share, a change from its previous forecast of 41 cents to 47 cents a share.
Operating lease-adjusted leverage at the end of its second quarter (ended Aug. 30, 2008) was 1.9x and given its earnings per share estimates, we expect leverage to be approximately 2.0x.
The company cited macroeconomic challenges and liquidation sales of a major competitor as the cause of the weaker-than-expected performance. We expect that these trends will continue in the fourth quarter, but credit metrics should remain in the low-2x area—still appropriate for the current rating category.
Media Contact: David Wargin, New York (1) 212.438.1579, david_wargin@standardandpoors.com
Analyst Contact: Charles Pinson-Rose, New York (1) 212.438.4944
Media Contact: David Wargin, New York (1) 212.438.1579, david_wargin@standardandpoors.com
Analyst Contact: Charles Pinson-Rose, New York (1) 212.438.4944
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