S&P rates Escada notes BB-

Standard & Poor's said it assigned its BB- long-term corporate credit rating to Escada AG. At the same time, a BB- senior unsecured debt rating was assigned to Escada's proposed €200 million bond.

The outlook is stable.

S&P said the ratings on Escada reflect the company's relatively weak financial profile, owing to earnings volatility inherent in the industry, its strong exposure to external shocks, and the group's reliance on one brand. The ratings are supported by Escada's strong brand name, which has limited exposure to fashion risk and is not dependent on one single designer.

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