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BCBG Max Azria Group Inc. Downgraded To 'CCC+' On Potential Covenant Violation Jan 12
Standard & Poors, Jan 2012
Abstract
U.S. specialty apparel retailer BCBG faces a potential covenant violation due to a meaningful revenue decline, as the company exited the mass market earlier than expected in 2011. We are lowering our corporate credit rating on the company to 'CCC+' from 'B-'. At the same time, we are lowering the issue-level rating on the company's $230 million term loan to 'CCC+' from 'B-'. The developing outlook reflects the potential for a further downgrade if BCBG violates its covenants or if it appears that the company is unlikely to receive a covenant amendment. Conversely, we could raise the ratings if liquidity improves and operating performance stabilizes; for example, if the company receives amendment and covenant headroom improves to over 10%. NEW...
Companies mentioned in this report are: BCBG Max Azria Group Inc.
Action: Downgraded
Action: Outlook: Developing
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: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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