Destination Maternity announces credit ratings upgrade

Philadelphia Standard & Poor's Ratings Services upgraded Destination Maternity Corp. in light of the retailer's improved results and "moderate debt repayment."

Destination Maternity last month swung to a bigger-than-expected profit in its fiscal first quarter amid surging margins and boosted its outlook for the year.

S&P, which gave a one-notch upgrade and now has Destination Maternity at B, said restructuring, cost cutting and lighter discounting have helped margins, despite pressure on revenue. The company has laid off workers, closed and renamed stores and streamlined its designer labels over the past year.

The ratings firm had put a positive outlook on the rating in August. The ratings outlook is now stable.