Moody's may cut William Carter

Moody's Investors Service said it placed all ratings of William Carter Co. Inc., a wholly owned subsidiary of Carter's Inc., on review for possible downgrade. LGD assessments are subject to change.

The agency said that the rating action follows from the company's announcement that, following a review by management of issues identified with respect to the timing of recognizing margin support agreements and the associated historical accounting treatment, it has concluded that the previously issued financial statements for the fiscal years 2004 through 2008 and the fiscal quarters from Sept. 29, 2007 through July 4, 2009 should no longer be relied upon.

Moody's said its review will focus on Carter's ongoing review into these matters, the steps taken to remediate identified control deficiencies, and the magnitude of the impact of any restatement on its financial statements.

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