Standard & Poor’s Ratings Service Thursday revised the outlook on BCBG Max Azria Group to “stable” from “negative” based on improved performance in the Max Rave wholesale business, acquired in 2006, and better liquidity from a $223 million expansion of its revolving credit facility. Although the rating of its term loan was lowered to “B-minus” from “B,” the recovery rating in the event of a default was boosted to “4” from “2.” S&P credit analyst Jackie Oberoi said the ratings reflect the company’s “participation in the highly competitive and fragmented apparel retailing industry…and a very highly leveraged structure that results in thin cash flow protection measures.” Credit metrics are expected to “significantly improve by year-end primarily due to EBITDA contribution” in the Max Rave wholesale business. S&P said the core BCBG Max Azria brand “faces stiff competition from numerous other apparel names, both in the department store channel and at other specialty retailers.”

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