Moody’s changes Twin Set outlook to negative

Moody's Investors Service said it changed the outlook on the ratings of Twin Set – Simona Barbieri SpA to negative from stable.

Concurrently, the agency affirmed the B1 corporate family rating, the Ba3-PD probability of default rating and the B1 rating on the €150 million senior secured notes due 2019.

"The change in the outlook reflects Moody's expectation that Twin Set's will not meet its previously set targets in terms of profitability, owing to higher operating costs, weaker than expected performance of some of the new retails stores and pressure on gross margin owing to sluggish consumer spending in some major markets. We therefore expect that leverage, as measured by adjusted debt/EBITDA, will likely remain above 4.3x in 2014 and 2015," Lorenzo Re, Moody's vice president, senior analyst and lead analyst for Twin Set, said in a news release.

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