On March 12, 2007, Standard&Poor's Ratings Services placed its ratings on Quiksilver Inc., including its 'BB' corporate credit rating, on CreditWatch with negative implications. The Huntington Beach, Calif.-based apparel company had about $1 billion in debt outstanding at Jan. 31, 2006. The placement follows the company's earnings announcement for the first quarter ended January 2007. Operating results were below Standard&Poor's expectations due to the weak winter season, which resulted in poor reorders, heavy markdowns, and significant reduction in orders for the next season for the Rossignol business. Furthermore, it is likely that operating results for the next several quarters will be depressed as a result of the softness in the hard goods business. Leverage remains very
