S&P cuts Ascena Retail

S&P said it downgraded Ascena Retail Group Inc. to B- from B.

The agency lowered the issue-level rating on its first-lien term loan facility to B from B+. The 2 recovery rating remains.

The outlook is negative.

Ascena recently reported weak results for its fiscal second quarter ended Feb. 2, and S&P said it now expects that some of the company's brands will experience deteriorating sales and profitability, particularly in its value and plus segments.

In addition, the company recently announced that it was selling a majority stake in Maurices as part of its comprehensive brand portfolio and asset review.

“We expect Ascena's operating performance to remain challenged over the next 12 months because of continued competitive threats and the risks involved in executing its brand realignment strategy,” the agency said in a news release.

© 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.