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Moody's: Quiksilver rating on review for downgrade
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.