Wednesday, 15 April 2009

S&P cuts Barneys credit rating, warns on liquidity

Standard & Poor's on Monday cut its ratings on Barneys New York Inc to a deeply distressed level and warned that vendors may tighten terms or limit shipments to the luxury retailer as its liquidity declines.

S&P cut Barney's credit ratings two notches to CCC, eight steps below investment grade, from B-minus. The outlook is negative, indicating an additional downgrade is more likely in the next two years.

"The downgrade reflects the deteriorating liquidity position of the company as demonstrated by the need for a cash infusion by Istithmar World," S&P said in a statement.

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