S&P lowers Escada

Standard & Poor's said it lowered the long-term corporate credit rating on Escada AG to B+ from BB- and its €200 million senior unsecured notes due in 2012.

The outlook is negative.

The downgrade follows the company's announcement that its revenue will drop by up to 10% in fiscal year ending Oct. 31, according to the agency. The company also is in talks with private equity investors.

The profit warning illustrates Escada's increased exposure to fashion risk in its main product lines, the agency said.

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