...Welcome to the Checkout: This is the fourth annual edition of the High-Yield Retail Checkout, a comprehensive review of the leveraged finance retail sector. The report profiles 20 of the largest high-yield retail and apparel companies, and each company report includes Fitch Ratings' assessment of the business and financial profile, and detailed capital structure, debt organizational chart and covenant analyses. Improved Macro, but Challenges Remain: Fitch expects overall U.S. retail sales (excluding auto) to grow at 3%¡4% in 2015, in line with or modestly better than the 3% growth projected for 2014. A gradual uptick in the employment rate and real wages, and some near-term benefit from lower gas prices, provide support. However, a variety of challenges, including online competition, reduced store traffic and persistent pressure on low-income consumers, will continue to constrain the overall performance of many leveraged retailers. Uneven Performance by Sector: Department stores, which...
