Moody’s drops Vince loan to B3

Moody's Investors Service said it affirmed Vince, LLC's B2 corporate family rating and B2-PD probability of default rating and lowered the speculative grade liquidity rating to SGL-3 from SGL-2.

The rating on the senior secured first-lien term loan due 2019 was downgraded to B3 from B2 per Moody's Loss Given Default Methodology, and the outlook was changed to negative from stable.

Moody’s said the downgrade of the term loan reflects both the term loan's lower rank within the capital structure and its size relative to the company's upsized ABL facility that was increased to $80 million from $50 million in June 2015.

The outlook change to negative reflects Vince’s recent earnings declines and revised guidance, as well as the agency’s view that soft operating performance could further weaken the company’s liquidity profile over the next 12 to 24 months, which could pressure the rating.

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