S&P trims Talbots

S&P said it lowered its ratings on the Talbots Inc. and its term loan facility to CCC+ from B-. The loan’s 3 recovery rating is unchanged.

Talbots temporarily closed its stores from March 17 through March 31. “We believe closures could be extended for more than a month given the increasingly drastic actions governments are taking to quell the rapid rise in new Covid-19 cases, temporarily elevating cash burn,” the agency said in a press release.

Talbots' online business, which normally represents close to 40% of total sales, remains operational and could partially offset the lost revenue, S&P said.

The outlook is negative.

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