S&P Places Junk Status Rating On Hanesbrands

NEW YORK (AP) — Standard & Poor's Ratings on Tuesday placed a "junk" status credit rating on Hanesbrands Inc. and put the company and its subsidiaries on CreditWatch over concerns about its operating performance.

The Winston-Salem, N.C.-based apparel company's performance has been suffering as shoppers cut back on spending and the overall retail market softens.

S&P placed a "BB-" corporate credit rating on Hanesbrands, three notches below an investment-grade rating.

The rating agency also placed the company on CreditWatch over concerns that its credit metrics may not to bounce back in the next several quarters, Standard & Poor's credit analyst Jayne Ross wrote.

Hanesbrands has said it believes results will improve in the second half of the year but Ross said that could prove difficult.

The rating organization is meeting with Hanesbrands management soon to assess its business and financial strategy for the next several quarters.