S&P ups Brown Shoe debt to B

Standard & Poor's said it revised the rating on Brown Shoe Co. Inc.'s unsecured debt to B from B- and the recovery rating to 4 from 5. The B corporate credit rating was affirmed.

S&P said the upgrade reflects its estimation that additional value is likely to be available based on discreet asset valuation.

The outlook is negative.

"The speculative-grade ratings on Brown Shoe reflect our analysis of the company's participation in the mature, competitive, and fragmented wholesale and retail footwear business; recent weak operating performance; low operating margins relative to those of its peers; and credit protection measures that are somewhat below average for the rating category," S&P analyst David Kuntz said in a statement.

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