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Barneys New York Inc. Jun 11
Standard & Poors, June 2011
Abstract
Strong, well-recognized brand image. Weak liquidity position; Highly leveraged capital structure with very thin credit protection measures; and Targets customers within the narrow luxury market; Small store base. The ratings on New York City-based Barneys New York Inc. indicates that the company is vulnerable to default, especially given our view that the balance sheet likely needs to be restructured and there are significant debt maturities occurring in September 2012. While performance has improved significantly over the past year, we currently assess the company's financial risk profile as highly leveraged, because of the substantially leveraged capital structure and very thin cash flow protection measures. Debt to EBITDA was 18.4x and interest coverage was 0.6x on Jan. 29, 2011. We believe credit...
Companies mentioned in this report are: Barneys New York Inc.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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