S&P ups PVH view to positive

S&P said it affirmed the corporate credit rating on PVH Corp. and revised the outlook to positive from stable.

S&P also affirmed the BBB- issue-level rating on the company's first-lien facilities, including revolving commitments comprised of the $450 million, C$25 million and €185 million facilities expiring in 2021, the $2.56 billion term loan ($2.03 billion outstanding at January 2017) due in 2021 and the $100 million 7.75% notes due in 2023.

The recovery rating on the first-lien facilities is unchanged at 1, which indicates an expectation for lenders to receive very high (90%-100%; rounded estimate 95%) in the event of payment default.

At the same time, S&P affirmed its BB+ issue-level rating on the company's unsecured debt obligations. The recovery rating on the unsecured obligations is unchanged at 3, which indicates an expectation for investors to receive meaningful (50%-70%; rounded estimate: 65%) recovery in the event of payment default.

“PVH Corp. is expected to continue its solid revenue growth over the next several years, which we believe will result in solid cash flow generation and improving credit metrics over the next 12 months,” said S&P credit analyst Peter Deluca in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.