S&P: Quiksilver notes CCC+, CCC

Standard & Poor's said it affirmed its B- corporate credit rating on Quiksilver Inc. and revised the outlook to stable from negative.

In addition, the agency assigned its CCC+ issue-level rating on the proposed $250 million senior secured notes co-issued the subsidiary QS Wholesale Inc. The recovery rating is 5, indicating our expectation of modest (10% to 30%) recovery for debtholders in the event of a payment default.

S&P also assigned its CCC issue-level rating on the proposed $250 million senior unsecured notes, also co-issued with QS Wholesale. The recovery rating is 6, indicating the expectation of negligible (0% to 10%) recovery for noteholders in the event of a payment default.

At the same time, the agency affirmed its B- issue-level rating on the company's €200 million European senior unsecured debt. The recovery rating is 4, indicating the expectation of average (30% to 50%) recovery for noteholders in the event of a payment default.

"The proposed refinancing removes Quiksilver's covenant issues and extends debt maturities, improving the company's liquidity. In response, we have revised the company's liquidity descriptor to 'adequate' from 'less than adequate' and revised the outlook on the corporate credit rating to stable from negative," S&P credit analyst Jacqueline Hui said in a news release.

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