By  on January 27, 2012

Ratings agency Standard & Poor’s on Friday downgraded the corporate credit rating of BCBG Max Azria Group to “CCC+” from “B-” based on the possibility of a covenant violation.

The agency said the potential covenant violation is due to a “meaningful revenue decline, as the company exited the mass market earlier than expected in 2011.” S&P said it was also lowering the issue-level rating on BCBG’s $230 million term loan to “CCC+” from “B-” — although it left the “3” recovery rating unchanged.

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