Our 'B-' rating on Quiksilver Inc. is derived from: Our anchor of 'b', based on our "vulnerable" business risk and "aggressive" financial risk profile assessments for the company. The comparable rating analysis modifier had an unfavorable one notch impact on the rating outcome. Participates in the highly competitive apparel industry, with inherent fashion risk. Relatively narrow product focus on youth action sports apparel. Portfolio of well-known brands, including Quiksilver, Roxy, and DC Shoes. Still-soft operating performance, but signs of improving EBITDA margin. Weak credit metrics, including high leverage. Improving free operating cash flow. Adequate liquidity. The rating outlook is stable, reflecting our view that Quiksilver's management is beginning to gain traction in improving its business and margins. As such, we
