It Holding, Moody's taglia rating, lascia creditwatch negativo

lunedì 17 novembre 2008 16:09

 (The following statement was released by the rating agency)
 Approximately EUR 185 million of rated debt affected
 Nov 17 - Moody's Investors Service has today downgraded IT
Holding SpA ITH.MI Corporate Family Rating and Probability of
Default Rating to Caa1 from B3, and the Senior Secured rating on
the EUR 185 million notes due 2012 issued by IT Holding Finance
SpA to Caa2 (LGD4, 69%) from B3. The ratings are on review for
further possible downgrade.
 "Today's rating action reflects ongoing pressure on consumer
spending, due to the generally weak economic environment and
high uncertainty on consumer confidence, and the negative impact
on IT Holding operating performances so far during the year, and
the expectation that the company's key credit metrics might
remain in line with a Caa rating at best for the next twelve
months", says Paolo Leschiutta, Vice President at Moody's and
lead analyst for IT Holding. 
 "Moody's also notes the deteriorating liquidity profile of
the company as it continues to rely on receiving bank support at
time when the current conditions in the financial markets remain
unsettle and further extension of ongoing support might be more
challenging for the company".
 "Given the ongoing economic slowdown and the uncertainty
related to the company's liquidity profile in connection with
the current distress in the global capital markets, ratings have
been placed under review for further possible downgrade",
explains Mr. Leschiutta. The review will focus on (i) the
company's capability to secure proper financing needed to invest
in the day to day activity and to face pending debt maturities
(including the EUR 9.4 million debt repayment delayed till the
22 December 2008), (ii) the company's line of actions to restore
the operating performances at core businesses, (iii) the
likelihood of further deterioration in consumer spending in
general and in the luxury apparel segment in particular, and
(iv) the expected credit profile of IT Holding going forward to
monitor whether this will remain supportive of the
business risk profile of the company.
 The last rating action on IT Holding was on the 16 September
2008 when Moody's changed the outlook on all ratings to
Ratings affected by today's action are as follow:
- Corporate Family Rating and Probability of Default Rating
downgraded to Caa1 from B3;
- Senior secured rating on the EUR 185 million notes due 2012
downgraded to Caa2 (LGD4, 69%) from B3;
Based in Italy, IT Holding S.p.A. is an European leading
operator in the branded apparel and accessories market mainly
focused on the young lines segment. During the first nine months
ended September 2008, IT Holding reported EUR468 million of
consolidated net revenues and EUR38.2 million of EBITDA
(adjusted for investments in collection development during the
 (New York Ratings Team)