S&P might cut Jones Group

Standard & Poor's said it placed its BB- corporate credit rating on Jones Group Inc. on CreditWatch with negative implications.

The CreditWatch placement follows Jones Group's Dec. 19 announcement that it entered into a definitive agreement to be acquired by financial sponsor firm Sycamore Partners. Jones will be acquired for $2.2 billion.

"While we do not know what the composition of the capital structure will be following the transaction, we believe the company's credit metrics could weaken if its financial sponsor influences financial governance toward shareholder-friendly strategies and the use of debt or debt-like instruments to maximize shareholder returns," S&P credit analyst Linda Phelps said in a news release.

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