Destination Maternity Announces Credit Ratings Upgrade by Standard & Poor's

PHILADELPHIA, Feb. 11 /PRNewswire-FirstCall/ -- Destination Maternity Corporation (Nasdaq: DEST), the world's leading maternity apparel retailer, today announced that Standard & Poor's Ratings Services ("S&P") raised both its corporate credit rating on Destination Maternity to 'B' from 'B-', and its issue level rating on the Company's Term Loan to 'BB-' from 'B'.  Also, S&P attached an outlook of "stable" to its credit rating of the Company.

S&P noted in its research update announcing the ratings upgrade, "The upgrade reflects the ongoing margin improvement, which has contributed to a substantial increase in EBITDA year over year. This EBITDA growth coupled with moderate amounts of debt repayment have resulted in sufficient improvement in the company's credit protection metrics to warrant an upgrade."  

Ed Krell, Chief Executive Officer of Destination Maternity, noted, "We are very pleased that Standard & Poor's has raised our credit ratings in recognition of our strong improvement in operating performance and cash flow and the resulting improvement in our financial and credit statistics.  We believe this upgrade is a positive development as we continue our progress in improving the profitability and financial position of our Company."

Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel, using its quick response replenishment system to "give the customer what she wants, when she wants it."  In the United States and Canada, Destination Maternity operates, as of January 31, 2010, 1,690 retail locations, including 711 stores, predominantly under the tradenames Motherhood Maternity®, A Pea in the Pod®, and Destination Maternity®, and sells on the web through its DestinationMaternity.com and brand-specific websites.  Destination Maternity also distributes its Oh Baby by Motherhood® collection through a licensed arrangement at Kohl's® stores throughout the United States and on Kohls.com.  In addition, Destination Maternity is expanding internationally and has entered into exclusive store franchise and product supply relationships in India and the Middle East.

The Company cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made from time to time by management of the Company, including those regarding the Company's credit worthiness, other results of operations, liquidity and financial condition, and various business initiatives, involve risks and uncertainties, and are subject to change based on various important factors.  The following factors, among others, in some cases have affected and in the future could affect the Company's financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any such forward-looking statements: the impact of the current global economic slowdown on the retail industry in general and on apparel purchases in particular, our ability to successfully manage our various business initiatives, our ability to successfully implement our merchandise brand and retail nameplate restructuring, the success of our international expansion, our ability to successfully manage and retain our leased department and licensed relationships and marketing partnerships, future sales trends in our existing store base, unusual weather patterns, changes in consumer spending patterns, raw material price increases, overall economic conditions and other factors affecting consumer confidence, demographics and other macroeconomic factors that may impact the level of spending for maternity apparel,  expense savings initiatives, our ability to anticipate and respond to fashion trends and consumer preferences, unanticipated fluctuations in our operating results, the impact of competition and fluctuations in the price, availability and quality of raw materials and contracted products, availability of suitable store locations, continued availability of capital and financing, goodwill impairment charges, our ability to hire and develop senior management and sales associates, our ability to develop and source merchandise, our ability to receive production from foreign sources on a timely basis, potential stock repurchases, potential debt prepayments, changes in market interest rates, war or acts of terrorism and other factors set forth in the Company's periodic filings with the Securities and Exchange Commission, or in materials incorporated therein by reference.

SOURCE Destination Maternity Corporation

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED