Moody’s ups Hanesbrands liquidity rating

Moody's Investors Service said it upgraded Hanesbrands Inc.’s speculative grade liquidity rating to SGL-2 from SGL-3. All other ratings are unchanged including the company's Ba3 corporate family rating, Ba3-PD probability of default, Ba2 senior secured bank credit facilities, and B1 senior unsecured note rating.

“The SGL change to SGL-2 (good) from SGL-3 (adequate) reflects Hanesbrands' improvement in liquidity as it has addressed all of its 2024 debt maturities. Hanesbrands recently refinanced its $1.4 billion of 2Q'24 bond maturities with a $900 million term loan due 2030 and $600 million in notes due 2031,” Moody’s said in a press release.

The refinancing also eliminated the springing first quarter 2024 maturities on the company's $1 billion revolver and about $980 million term loan A which both now come due in November 2026.

“The SGL upgrade also reflects the expected improvement in cash flow generation in calendar 2023 and increased revolver availability,” the agency said.

The outlook is negative.

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