Moody's rates Genesco convert B2

Moody's Investors Service assigned a rating of B2 to Genesco Inc.'s 4.125% convertible subordinated debentures due 2023 and confirmed its other ratings. The outlook is stable.

The ratings incorporate declining performance metrics, which Moody's believes are due largely to cyclical factors, as well as Genesco's prudent financial and operating strategies that have helped generate positive cash flow and maintain acceptable debt protection measures.

Ratings also reflect Moody's expectations that Genesco's overall effective leverage will not be significantly impacted by the lower amount of long term debt because of the effect of lease payments on coverage and leverage measures.

Moody's believes that Genesco's cash balances and working capital facility, which has historically been used primarily for seasonal purposes, provides sufficient liquidity to support normal operations.

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