Moody's ups Express loan to B1

Moody's Investors Service said it affirmed Express, LLC's B2 corporate family and probability-of-default ratings to reflect the company's recent operating improvement.

The agency raised the rating on the company's $125 million senior secured term loan $125 million senior secured term loan to B1 (LGD3, 38%) from B2 (LGD4, 56%).

The outlook is stable.

Express' B2 corporate family rating also reflects the company's national diversification and brand name, the agency said.

For the 12 months ended Feb. 2, the issuer's pro forma debt-to-EBITDA ratio fell to below 4.2 times.

The rating is constrained by the volatility in the company's specialty apparel retail sub segment, the company's high seasonality, modest scale and profitability relative to other global retailers, and the ongoing expectation for shareholder friendly financial policies, the agency said.

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