Moody's ups Hanesbrands loans to Baa3

Moody's Investors Service said it upgraded Hanesbrands, Inc.'s senior secured revolving credit facility rating to Baa3 from Ba1 and affirmed the company's Ba3 corporate family and probability-of-default ratings, B1 (to LGD4, 60% from 62%) senior unsecured note rating and SGL-2 speculative grade liquidity rating.

The outlook is stable.

The upgrade of Hanesbrands' $600 million senior secured revolving credit facility to Baa3 reflects the further increase in credit support to the revolver that will occur from the upsizing of the company's new senior unsecured notes to $1 billion from $750 million, according to the agency.

Hanesbrands' Ba3 corporate family rating reflects the company's significant scale of operation, its portfolio of well known brands and the benefits of a vertically integrated supply chain, the agency said.

Hanesbrands' ratings are constrained by its moderate financial leverage with a debt-to-EBITDA ratio in the low 4 times range.

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