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Summary: Barneys New York Inc. Dec 11
Standard & Poors, December 2011
The ratings on New York City-based luxury retailer Barneys New York Inc. indicate that the company is vulnerable to default, especially given our view that the company will likely need to restructure its balance sheet and that there are significant debt maturities occurring in September 2012. We assess the company's financial risk profile as "highly leveraged" (based on our criteria) because of its substantially leveraged capital structure and very thin cash flow protection measures. Credit measures have remained in line with current levels, and we do not expect a meaningful improvement over the near term. As of July 30, 2011, interest coverage was 0.6x, total debt to EBITDA was 18.0x, and funds from operations to total debt was 2.3%. The...
Companies mentioned in this report are: Barneys New York Inc.
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.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
Barneys New York Inc.