Moody's may lower Escada

Moody's Investors Service said it placed Escada AG's corporate family rating of B2 and the senior unsecured rating on the notes due 2012 of B2 on review for possible downgrade.

The rating action follows the company's second profit warning announcement over the last two months and follows the ratings downgrade by one notch on May 15, the agency noted.

On June 20, Escada announced that following significant revenues drop at its BiBa retail chain during the period from February to April, the company is reviewing its EBITDA target for the current FYE October 2008 to €37 million, which compares unfavorably to the €51 million announced in early April and to the €68.2 million reported at FYE October 2007.

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