S&P: Stuart Weitzman loan B

Standard & Poor's said it assigned a B corporate credit rating to Stuart Weitzman Acquisition Co. LLC.

The agency also said it assigned a B rating to the company's proposed $220 million secured term loan due 2020. The recovery rating is 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The agency said it is assigning ratings to Stuart Weitzman in conjunction with its pending acquisition by financial sponsor, Sycamore Partners. Stuart Weitzman will become a stand-alone company following Sycamore's $2.2 billion acquisition of the Jones Group Inc.

S&P said it expects the transaction to close during the second quarter of 2014 and estimates the company's pro forma 2013 debt-to-EBITDA leverage will be about 5x.

The ratings reflect the company's highly leveraged financial risk profile and weak business risk profile, the agency said.

The ratings also consider its small scale, narrow business focus on the luxury shoe segment and reliance on a single brand, S&P said.

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