Moody's Changes Warnaco Outlook To 'positive'

NEW YORK (AP) — Moody's Investors Service said Monday it has changed its outlook on Warnaco Group to "positive" from "stable" and affirmed its current ratings.

Warnaco Group Inc. makes Olga lingerie, Speedo swimwear and Calvin Klein brand underwear.

It corporate family and probability of default ratings are "Ba2," which is non-investment grade, or "junk."

The revision of the outlook to "positive" reflects continued improvement in the company's financial metrics and its maintenance of consistent operating performance amid the tough economy, Moody's said. Moody's Senior Analyst Scott Tuhy also said Warnaco had cut its debt at a faster rate than expected.

The agency said it could upgrade the ratings if the company continues to improve.

Its shares fell 15 cents to $41.80 in afternoon trading.