Everest Holdings LLC (d/b/a Eddie Bauer) 'B-' Rating Outlook Revised To Negative On Weak 2015 Results

U.S.–based specialty apparel retailer Everest Holdings LLC (d/b/a Eddie Bauer) had poor sales performancethat weakened credit metrics and narrowed its liquidity position during 2015. We are revising our outlook to negative from stable and affirming our 'B-'corporate credit rating on Eddie Bauer. At the same time we are lowering the secured term loan rating to 'CCC+' from 'B-' given lower recovery prospects following the expansion of its revolving credit facility. The negative outlook reflects our view of potential further pressure on the company's liquidity position given our expectations for sales trends to remain challenged. The negative outlook incorporates our expectation for debt to EBITDA to remain above 5.0x and FFO to debt below 12% over the next 12 months. NEW

...+ U.S.¡based specialty apparel retailer Everest Holdings LLC (d/b/a Eddie Bauer) had poor sales performancethat weakened credit metrics and narrowed its liquidity position during 2015. + We are revising our outlook to negative from stable and affirming our 'B-'corporate credit rating on Eddie Bauer. At the same time we are lowering the secured term loan rating to '###+' from 'B-' given lower recovery prospects following the expansion of its revolving credit facility. + The negative outlook reflects our view of potential further pressure on the company's liquidity position given our expectations for sales trends to remain challenged. The negative outlook incorporates our expectation for debt to EBITDA to remain above 5.0x and FFO to debt below 12% over the next 12 months. NEW YORK (Standard & Poor's) April 20, 2016--Standard & Poor's Ratings Services today affirmed its 'B-' corporate credit rating, on Everest Holdings LLC (d/b/a Eddie Bauer) and revised the outlook to negative from stable....

Ratings Action