S&P ups Totes Isotoner

Standard & Poor's said that it raised Totes Isotoner Corp.'s corporate credit rating to B from B- and the issue-level rating on its senior secured first-lien debt due 2013 to B from B-. The recovery rating remains 4, indicating the expectation of average (30% to 50%) recovery in the event of payment default.

S&P said it also raised the issue-level rating on the senior secured second-lien debt due 2014 to CCC+ from CCC. The recovery rating remains 6, indicating the expectation of negligible (0 to 10%) recovery in the event of payment default.

The outlook is stable.

The upgrades reflect the company's strengthened credit measures and adequate liquidity because of profit recovery and debt reduction over the past year, S&P said.

The ratings consider the company's moderate cash flow generation, highly leveraged financial risk profile and vulnerable business risk profile, the agency said.

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