S&P Places Neiman Marcus Ratings on Watch Negative

New York City, Standard & Poor’s Rating Services today placed its ‘BBB’ corporate credit and senior unsecured debt ratings for The Neiman Marcus Group Inc. on CreditWatch with negative implications. The action followed the retailer’s announcement that it is exploring strategic alternatives to enhance shareholder value, including the possible sale of the company. The Dallas-based company has hired Goldman Sachs & Co. as its financial advisor.

“Because Neiman Marcus has been a highly successful retailer of luxury merchandise and is continuing to enjoy strong sales and earnings gains, we believe that the sale of the company would likely be a significant premium to EBITDA,” said Standard & Poor’s credit analyst Gerald Hirschberg.