S&P affirms Abercrombie & Fitch

S&P said it affirmed the BB- corporate credit rating on Abercrombie & Fitch Co.

The outlook is negative.

At the same time, the agency affirmed the BB+ issue-level rating on its asset-backed lending revolver and the BB issue-level rating on its term loan.

The recovery rating on the revolver remains 1, reflecting an expectation for substantial (90%-100%; rounded estimate: 95%) recovery in the event of a payment default.

The recovery rating on the term loan remains 2, reflecting an expectation for meaningful (70%-90%; rounded estimate: 70%) recovery.

S&P said the affirmation reflects a view that operating performance at the Abercrombie & Fitch brand, which represents a little over 40% of sales, is beginning to show signs of stabilization, which indicates that the brand repositioning efforts in that segment could be gaining traction.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.