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Nine West Holdings Possible Restructuring

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On May 12, 2017, S&P Global Ratings lowered its corporate credit rating on Nine West Holdings, Inc. to CCC- from CCC, its secured $445 million first-lien term loan due 2019 to CCC+ from B-, its $300 million senior unsecured term loan due 2020 to C from CC and its $700 million of senior unsecured notes due 2019 and thereafter to C from CC. “The downgrade on Nine West reflects our view of an increased likelihood that the company will complete a debt restructuring within the year, wherein investors will receive less value than the original principal obligation,” said S&P Global Ratings credit analyst Suyun Qu. S&P Global believes the Company’s hiring of Lazard Freres & Co. LLC, an advisor, indicates its intent to restructure its debt given its weak cash flow generation, very high debt leverage, upcoming maturity of approximately $1 billon of debt in 2019, and the difficult retail environment for brick and mortar stores, which are its major customers. Read more on distressed companies.