Moody's: William Carter notes Ba2

Moody's Investors Service said it assigned a Ba1 corporate family rating and a Ba1-PD probability of default rating to Carter's, Inc.

Moody's also assigned a Ba2 rating to the proposed offering of $400 senior notes to be issued by its wholly owned subsidiary, William Carter Co.

A speculative grade liquidity rating of SGL-1 was also assigned. The outlook is stable.

Carter's intends to use the proceeds of the notes offering to return capital to shareholders through share repurchases and/or dividends and for general corporate purposes.

Moody's said the Ba2 rating assigned to the senior unsecured notes reflects their junior ranking positive vis-a-vis the company's $375 million senior secured revolver, which has a first-lien on substantially all domestic assets of the company.

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