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.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.