Tuesday June 17, 5:20 pm ET
Moody's says it could downgrade Quiksilver ratings if it does not successfully sell Rossignol NEW YORK
(AP) -- Credit-ratings agency Moody's Investors Service on Tuesday put Quiksilver Inc.'s ratings on review for a possible downgrade as it tries to sell its ski equipment unit Rossignol.
Quiksilver plans to sell Rossignol, a French company
it bought in 2005. Since then, consumers have begun to cut back on
big-ticket items such as skis and sports equipment amid a difficult
environment.
The outdoor clothing maker has classified Rossignol as discontinued operations.
The review will consider the uncertainty associated with the company's ability to successfully conclude a sale of Rossignol, Moody's said.
A successful sale would have an immediately positive impact on results, Moody's said in a statement, but the amount, timing and terms of any sale remains uncertain.
"Failure to sell the business in the near-term term would likely mean that Quiksilver will not be able to achieve the credit metrics necessary to maintain its current rating," Moody's said.
Quiksilver shares rose 11 cents to $9.39.
