S&P ups Charlotte Russe, rates loan CCC

S&P said it raised its corporate credit rating on Charlotte Russe Inc. to CCC from SD following the completed debt restructuring. The outlook is negative.

At the same time, S&P assigned a 3 recovery rating and CCC issue-level rating to the company's new $90 million 8½% fixed-rate term loan due 2023. The recovery rating of 3 indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default.

“The upgrade follows our reassessment of Charlotte Russe's capital structure and liquidity position subsequent to its recent debt restructuring. The completed restructuring agreement meaningfully reduces the company's debt load, with a new $90 million term loan replacing the company's previous $214 million of term loan debt,” S&P said in a news release.

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