Moody's Investors Service put Quiksilver Inc.'s ratings on review for a possible downgrade as it tries to sell its ski equipment unit Rossignol. As reported, Quiksilver plans to sell Rossignol, a French company it bought in 2005. The company has classified Rossignol as discontinued operations.
Moody's said the review will consider the uncertainty associated with the company's ability to successfully conclude a sale of Rossignol. 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.
