Manhattan Beach-Based True Religion's Credit Rating Dropped

MANHATTAN BEACH, CA -- Designer Jeans brand, True Religion, may become a fashion don't if it doesn't come up with a way to avoid defaults on its loans, The Street reported.

The Manhattan Beach-based company is showing warning signs resembling that of now-bankrupt retailers, Sports Authority and American Apparel, according to the trade publication for investors. The company has debt load of roughly $485 million and may have to close stores or find a financial partner to avoid defaulting, according to The Street.

"What we anticipate is there will be benefit, but the promotional retail environment, the weak traffic and challenges of the brand will largely negate the benefit from these actions," senior Moody's Investors Service Inc. analyst Raya Sokolyanska told The Street.

Moody recently downgraded True Religion corporate family's credit rating, The Street reported.

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-- Photo courtesy of True Religion