S&P lowers Mothers Work corporate credit rating

The ratings agency changed the corporate credit rating one notch to "B-" from "B." Both are non-investment grade or "junk" ratings.

S&P also reduced its rating on the company's $90 million senior secured term loan to "B" from "B+."

"The downgrade reflects ongoing merchandising issues, increased competitive pressures, concerns regarding covenant compliance, and overall weak performance," credit analyst David Kuntz said in a statement.

Shares of Philadelphia-based Mothers Work fell 23 cents to $13.64 in morning trading.