BCBG’S CORPORATE CREDIT RATING WITHDRAWN: Credit ratings agency Standard & Poor’s on Friday withdrew its “CCC-” corporate credit rating on BCBG Max Azria Group Inc., citing a request by the company.
A BCBG spokeswoman said, “Current debt did not require a credit rating; therefore, we withdrew it.”
S&P said, “At the time of the withdrawal the outlook was negative. We continue to believe there is a high likelihood for a restructuring within the next six months.”
The company has been in discussions to restructure about $685 million in debt for over a year now. It is understood that Guggenheim Partners holds about $475 million of the debt, with $230 million on a first-lien term loan and $245 million on a second-lien term loan. Those discussions include a refinancing that would convert the debt into equity, and would give Guggenheim control of the company.
The BCBG spokeswoman declined comment on the current status of those talks.