S&P lowers Ascena, facility

S&P said it lowered its corporate credit rating on the Ascena Retail Group Inc. to BB- from BB.

The outlook is stable.

At the same time, the agency lowered its issue-level rating on the company's senior secured term loan facility to BB from BB+. The 2 recovery rating is unchanged, reflecting an expectation for substantial recovery (70%-90%; lower half of the range) of principal in the event of a payment default.

"The rating action reflects the company's continued weakened operating performance – a trend we expect to continue over the next 12 months," S&P credit analyst Mathew Christy said in a news release.

"We believe negative same-store sales across Ascena's major brands and continued EBITDA margin decline, versus fiscal year 2015, are likely for the rest of this fiscal year, despite the company's ongoing operating cost and sourcing initiatives."

© 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.