Ascena Retail Group (ASNA) Comments on S&P Global Ratings Report

ascena retail group, inc. (Nasdaq: ASNA) (“ascena” or the “Company”) today issued the following statement in response to the recent report from S&P Global Ratings (“S&P”) relating to the Company:

As previously stated publicly, the ascena Board and management team continue to take proactive actions designed to optimize the Company’s balance sheet. Bankruptcy is not being considered. The Company remains in full compliance with all of its obligations under its financing agreements and intends to remain so.

The rating change initiated by S&P today is a technical action pertaining to ascena’s debt repurchase activity and is unrelated to its financial or operational performance, or strategic path forward. The debt repurchases are associated with the Company’s balance sheet optimization efforts. As noted in the S&P report, S&P expects the issuer rating change to be temporary and that the rating would be raised to the low ‘CCC’ category range after their reevaluation. This rating change is not expected to impact the Company’s ability to meet future obligations.

As noted when the Company reported its results for the second quarter of fiscal 2020, ascena is operating a business with significant liquidity, with over $600 million in cash and revolver availability as of the end of the second quarter. The Company’s ongoing progress on its strategic and cost reduction objectives was reflected in operating income that surpassed its guidance for the second quarter of fiscal 2020 due to the combined impact of better-than-expected gross margin performance and continued cost reduction efforts across the business.

As ascena navigates through the current macroeconomic environment, the Company is proceeding with a clear focus on Premium, Plus and Kids segments by executing strategies that are designed to ensure long-term relevance and differentiation of the Company’s brands and ultimately drive the long-term value of the business..

You May Also Be Interested In

• Entrata (ENT) files for proposed IPO
• Kohl's names Ryan Waymire as chief merchandising officer
• Garmin launches JL Audio M200 marine speakers and subwoofers