Novelty gift and Halloween retailer SSH Holdings Inc. d/b/a Spencer Spirit faces weak operating performance as a result of headwinds from continued declining mall traffic and our expectation for weak sales volumes at the key Spirit Halloween stores due to the unfavorable timing of Halloween in 2017. We are lowering the corporate credit rating to 'CCC+' from 'B-' reflecting our expectations for continued weak operating performance, which we believe increases the potential for an eventual financial restructuring, in our opinion, given our expectations for continued weak operating performance. We note the reported persistently low pricing indications of the company's debt, but also continue to view the company's liquidity as adequate for the coming year. The negative outlook reflects the risk
