Well-recognized lifestyle brands Diverse geographic distribution Participates in the highly competitive apparel industry Fashion risk, fickle end consumer A narrow business focus Standard&Poor's Ratings Services' ratings on Huntington Beach, Calif.-based Quiksilver Inc. reflect our view that the company has a "vulnerable" business risk profile (as our criteria define the term) because of its exposure to the cyclical apparel industry, its relatively narrow niche focus in the competitive apparel industry, and the fashion risk inherent in its target market. Our ratings also reflect Quiksilver's financial risk profile, which we characterize as "aggressive" based on the company's high debt burden and aggressive financial policies. Although debt levels are lower than in the prior year, following the $140 million debt-for-equity exchange
