S&P: Hilfiger still on watch

Standard & Poor's said its ratings on Tommy Hilfiger USA Inc., including its BB- corporate credit and senior unsecured debt ratings, remain on CreditWatch negative, where they were placed on Nov. 3, 2004.

The ratings remain on CreditWatch and reflect S&P's concern regarding the company's negative operating trends, including the continued decline in revenues and the significant contraction in pre-tax earnings for the quarter ended December 2004.

While the company currently has sufficient liquidity resources, S&P said it remains concerned with potential constraints that could affect the company's financial resources due to the additional legal costs arising from the government investigation and the class action lawsuits against the company.

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