S&P ups Abercrombie & Fitch

S&P said it raised Abercrombie & Fitch Co. to BB- from B+ and its senior secured notes to BB- from BB. The 2 recovery rating is unchanged.

“We expect resilient fourth-quarter 2020 earnings performance will set the tone for a steady recovery in 2021, with adjusted leverage remaining below 3x. Despite a difficult operating environment, ANF's 2020 results outperformed our former base case, thanks to a significant recovery in operating performance during the second half of the year,” the agency said in a press release.

S&P said it forecasts higher sales volumes and lower occupancy expenses to lead to steady cash flow and earnings, with leverage remaining below 3x. “As such, we revised our financial risk profile to intermediate from significant.”

The outlook is stable.

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