S&P cuts Burlington outlook to stable

Standard & Poor's said it revised the outlook on Burlington Coat Factory Warehouse Corp. to stable from negative.

Concurrently, the agency said it affirmed the B- corporate credit rating on the company.

"The outlook change reflects its belief that Burlington's cushion over financial covenants of its senior term loan will be a minimum of 13% over the next year," said S&P credit analyst Diane Shand, "despite the leverage covenant becoming more restrictive in the fourth quarter of 2009 at May 29, 2009."

The cushion is higher than its previous forecast as Burlington's profitability improved in its fiscal third quarter as a result of its cost-cutting initiatives, the agency noted.

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