Moody’s drops Vince, loan

Moody's Investors Service said it downgraded Vince, LLC's corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD, senior secured first-lien term loan due 2019 to Caa2 from Caa1 and speculative grade liquidity rating to SGL-4 from SGL-3.

The outlook is stable.

"The downgrade reflects Moody's expectation that weak operating performance will sustain credit metrics outside the range of a B3 rating and pressure the company's liquidity profile over the next 12-18 months," Moody's analyst Dan Altieri said in a news release.

The agency estimates lease adjusted leverage at just over 6 times for the LTM period ended Oct. 29, 2016, but expects leverage could reach the high 6 times range over the next few quarters, with interest coverage (EBITA/interest expense) below 1 time.

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