Fitch: Saks' Ratings Unchanged After Successful Consent Solicitation.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. maintains a Rating Watch Negative on Saks Incorporated Saks Incorporated (NYSE: SKS) is a Fortune 500 operator of department stores in the United States. While currently headquartered in Birmingham, Alabama, the company is in the process of moving to New York City. Saks Incorporated was formerly known as Proffitt's, Inc. (Saks) following today's announcement that it has received consent from the required majority of its senior noteholders and convertible senior noteholders to amend its indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. and waive defaults relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a previously received notice of default. These consents remove the risk that the company's senior notes and convertible senior notes could be accelerated and extend the date by which Saks must file its financial statements to Oct. 31, 2005. Saks also announced that $533 million of senior notes have been tendered to-date out of a total of $658 million that could be tendered. This tender will be financed with cash of approximately $300 million and proceeds of $622 million from the sale of the company's southern department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. to Belk, Inc., which is expected to close shortly. Fitch rates Saks' senior notes 'B+' and $800 million secured bank facility 'BB'. The Rating Watch Negative reflects the possibility of a weakened credit profile, including a more narrow business focus as a result of the restructuring actions outlined by the company on April 29, 2005 and the potential need for additional financial restatements due to an ongoing accounting investigation. The restructuring actions include the sale of the Proffitt's and McRae's operations to Belk, Inc. for $622 million. In addition, Saks announced at that time that it is exploring strategic alternatives for its Northern Department Store Group and its Club Libby Lu Club Libby Lu is a chain of stores primarily targeted to preteen girls. As of 2006, the store chain operates 62 stores in 28 states in the United States. Club Libby Lu was founded by Mary Drolet, a former executive at Claire's and Montgomery Ward, in August 2000[1]. business. While debt levels will be reduced as a result of the outstanding tender offer and liquidity would receive a boost from any additional asset sales, the ultimate balance sheet impact from these transactions is uncertain at this time. In addition, there is uncertainty as to the reliability of the company's recent financial statements and current financial profile due to an ongoing investigation into vendor accounting irregularities and the resulting delay in the filing of the company's 10-K and first-quarter 10-Q. An SEC investigation into these issues has widened to include related accounting and financial matters. Fitch will also continue to monitor the ongoing accounting investigations as well as Saks' operating performance, which has been pressured in recent years by soft apparel sales and growing competition from specialty and discount retailers. Fitch's rating definitions are available on the agency's public web site, 'www.fitchratings.com'. Published ratings, criteria and methodologies, and relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from this site, at all times. This document will remain on the public site for seven days. |
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