S&P lowers Ascena, facility

S&P said it lowered its corporate credit rating on the Ascena Retail Group Inc. to B+ from BB- and lowered the issue-level rating on its senior secured term loan facility to BB- from BB.

The 2 recovery rating indicates an expectation for substantial recovery (70%- 90%; rounded estimate: 70%) in the event of a default or bankruptcy.

The outlook is negative.

“The downgrade reflects our belief that the operating environment for specialty retail apparel will remain very challenged and that Ascena's various brands will stay weak as a result,” the agency said in a news release.

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