Barneys New York downgraded on liquidity concerns

New York City Standard & Poor's Ratings Services has lowered its rating on Barney's New York to 'CCC' from 'B-' on concerns about its cash position. It also lowered the issue-level rating on the company's senior secured term loan to 'CCC' from 'B-'. The outlook is “negative,” implying further downgrades are possible.

S&P credit analyst David Kuntz said the downgrade reflects the company's deteriorating liquidity position, which was highlighted by its recent need for a cash infusion by Istithmar World.