Reuters: Mergers News: TEXT-S&P: Pep Boys ratings unaffected by Gores Group review

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TEXT-S&P: Pep Boys ratings unaffected by Gores Group review May 1st 2012, 17:50 Tweet Share this Email Print Related Topics Stocks » M&A » Bonds News » Bonds » Markets » Cyclical Consumer Goods » Tue May 1, 2012 1:50pm EDT May 1 - Standard & Poor's Ratings Services said today that neither its 'B' corporate credit rating nor its CreditWatch Negative placement on Philadelphia-based Pep Boys-Manny, Moe & Jack is affected by The Gores Group's announcement that it intends to continue its review of Pep Boys to determine its course of action with respect to the proposed leveraged buyout transaction in light of Pep Boys' weak first-quarter fiscal 2012 results. According to Pep Boys' 8-K filing on May 1, 2012, Gores recently notified Pep Boys that, based on the serious deterioration in Pep Boys' business, Gores believes the proxy statement with respect to the special meeting of shareholders of Pep Boys to consider and vote on the proposed merger is no longer accurate and that the meeting should be delayed 30 days to allow Gores to determine the cause and extent of the downturn. Pep Boys still intends to move forward with the special meeting of its shareholders to be held on May 30, 2012, and filed an additional 8-K on May 1, 2012 to provide preliminary results for first-quarter fiscal 2012 ended April 28, 2012. The company's preliminary results show revenue growth of about 2.2% and operating margin of about 1.5%, which is below our expectations. Pep Boys plans to provide further details when it files its 10-Q, most likely in early June. We will monitor these latest developments with an intent to resolve the CreditWatch Negative listing after we receive further information on the proposed merger. Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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