S&P lowers True Religion

Standard & Poor's said it lowered its corporate credit rating on True Religion Apparel Inc. to B- from B. The outlook is stable.

At the same time, S&P lowered the issue-level rating on the company's first-lien term loan to B- from B, with a 3 recovery rating. S&P also lowered the issue-level rating on the company's second-lien term loan to CCC from CCC+, with a 6 recovery rating.

"The downgrade reflects our expectation that sales and earnings trends will continue to be weak in fiscal 2014," said S&P credit analyst Helena Song in a news release. "We believe the specialty apparel industry will remain difficult and highly promotional because of competition and consumer caution and that True Religion may not be able to adequately offset these trends. The company's credit measures have weakened in recent quarters and we believe they will further deteriorate in the next 12 months."

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