Moody's: Totes Isotoner outlook stable

Moody's Investors Service said it affirmed Totes Isotoner Corp.'s ratings and revised the outlook to stable from positive.

Moody's said the outlook change was based on its expectation that Totes Isotoner's credit metrics are unlikely to improve in the wake of warmer, dryer weather this past winter and management's demonstrated preference for spending excess cash flow on acquisitions rather than on debt repayment.

While revenues and operating profit have steadily grown through acquisitions, the company has not reduced its debt balance.

As a result, leverage has remained elevated and is unlikely to decline materially for the foreseeable future, the agency said.

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