Moody's Cuts Warnaco Grp Sr Implied To Ca
30 Mar 10:21
Following is a press release from Moody's Investors Service:
New York, March 30, 2001 -- Moody's Investors Service lowered the ratings of
The Warnaco Group, Inc. The affected ratings are:
Designer Holdings, Ltd. -- $120 million issue of 6% Convertible Subordinated
Debentures due 2016, to C from Caa1.
Designer Finance Trust -- $120 million issue of 6% Convertible Trust
Preferred Securities due 2016, to "c" from "caa".
The Warnaco Group Inc. -- Senior Implied Rating to Ca from B1; Senior
Unsecured Issuer Rating to Ca from B2.
The downgrade reflects the company's lack of profitable operations in2000,
with no expected return to profitability in 2001; anduncertainties regarding
both the company's liquidity and the realizablevalue of the company's
intangible assets. The company reports that it has received a waiver of certain
financial covenants from its lendersthrough mid-April and that it has retained
advisors to, among other things, contemplate potential asset sales whose
proceeds could be used to reduce debt.
Headquartered in New York, The Warnaco Group is a major designer,
manufacturer, and marketer of women's intimate apparel, menswear and
accessories and designer jeans and jeans related sportswear for men,women,
juniors and children under a variety of brand names.
(END) DOW JONES NEWS 03-30-01
10:21 AM |
