On August 26, 2016, S&P Global Ratings lowered its corporate credit rating on Nine West Holdings, Inc. to CCC from CCC+, secured first-lien debt rating to B- from B, senior unsecured term loan rating to CCC- from CCC+ and its senior unsecured notes rating to CC from CCC-. According to S&P Global, the downgrade reflects their view of an increased likelihood that Nine West will need to complete a distressed debt restructuring wherein investors will receive less value than the promise of the original securities.
On August 26, 2016, Moody’s Investors Service downgraded Nine West Holdings, Inc.’s corporate family rating to Caa2 from Caa1, probability of default rating to Caa2-PD from Caa1-PD, Senior Secured Bank Credit Facility to B3 from B1 and Senior Unsecured Bank Credit Facility to Caa2 from Caa1. According to Moody’s, the downgrade results from ongoing declines in Nine West’s revenue and earnings, with EBITDA falling further to $52 million for the LTM period ending July 2, 2016, which compares to EBITDA of $90 million in fiscal 2015. Read more on distressed companies.
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