On May 7, 2007, Standard&Poor's Ratings Services lowered its corporate credit rating on global lifestyle apparel marketer and designer Quiksilver Inc., to 'BB-' from 'BB'. At the same time, Standard&Poor's lowered the rating on the company's $400 million senior unsecured notes due 2015, to 'B+' from 'BB-'. (The notes are rated one notch below the corporate credit rating, reflecting Standard&Poor's criteria for notching of holding company debt issues when there is a material disadvantage due to structural subordination.) All ratings were removed from CreditWatch with negative implications, where they were placed on March 12, 2007, following the company's announcement of much-weaker-than-expected operating results for the first quarter ended January 2007, and the resulting downward
