S&P downgrades IKKS

S&P said it lowered its long-term corporate credit rating on HoldIKKS SAS, the parent company of French premium fashion retailer IKKS Group SAS, to B- from B.

The outlook is negative.

In addition, S&P lowered its long-term issue rating on IKKS' €33 million super senior revolving credit facility to BB- from BB. The recovery rating is 1+, reflecting an expectation of full recovery, in the event of a payment default.

S&P also lowered its issue ratings on the group's senior secured notes to B- from B. The recovery rating remains 4, reflecting an expectation of average (30%-50%) recovery in the higher half of the range.

S&P said the downgrade reflects its view of IKKS' weakened business risk profile, which S&P has revised to weak from fair. This is underpinned by S&P’s view of the vulnerability of IKKS' operating model to changes in market conditions.

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