Moody's rates Jones notes Ba3

Moody's Investors Service said it assigned a Ba3 (LGD 4, 67%) rating to Jones Group Inc.'s. proposed $300 million of new senior notes due 2019.

The outlook is stable.

Proceeds from the notes will be used for general corporate purposes.

Jones' Ba2 corporate family and probability of default ratings, Ba3 (LGD 4, 67% from 68%) $250 million of senior notes due 2014 and $250 million of senior notes due 2034and SGL-1 speculative-grade liquidity rating were affirmed.

The affirmation considers that despite the increase in leverage resulting from the new debt offering key credit metrics will remain solid given the expectation that Jones' continuing restructuring of its retail operations will have a positive impact on performance, Moody's said.

The ratings reflect the company's large size in terms of revenue and the breadth of its brand and product portfolio as well as Jones' low operating margins relative to its peers and significant reliance on the department store and mid tier channels, the agency said.

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