Moody's could lower Jones Group

Moody's Investors Service said it placed Jones Group, Inc.'s Ba3 corporate family rating and Ba3-PD probability of default rating on review for downgrade following the announcement that it will likely be acquired by private equity firm Sycamore Partners.

LGD assessments are subject to change. The company's SGL-2 speculative grade liquidity rating is unchanged.

Moody's said the review for downgrade reflects the possibility that the proposed transaction, which may possibly be financed with additional debt, will result in significantly higher financial leverage. The review also reflects uncertainties on the new owner's operating strategies with respect to Jones' broad portfolio of brands.

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