S&P revises Hasbro view to positive

S&P said it revised its outlook on Hasbro Inc. to positive from stable and affirmed the BBB- ratings on the company and its senior unsecured notes.

“We revised our outlook on Hasbro to positive because we have upwardly revised our base case for revenue, EBITDA and cash flow and debt repayment this year. As a result, and incorporating the company's long-term financial policy for gross leverage of 2x-2.5x, we believe the company could reduce leverage to below our 3x upgrade threshold through 2022,” the agency said in a press release.

S&P noted the upward base-case revision reflects better-than-expected performance at game publisher Wizards of the Coast through the first half of the year, and the continuing demand for toys as pandemic restrictions loosened over the summer.

“Despite our revised base case for leverage that is modestly lower than our upgrade threshold this year, we are unlikely to raise the rating until we have better visibility into this year's holiday season,” S&P said.

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