Moody's lifts Lands' End view to stable

Moody's Investors Service said it affirmed Lands' End, Inc.'s corporate family rating at B3 and probability of default rating at B3-PD, along with the B3 (LGD 4) rating on the company's $515 million principal senior secured term loan due 2021 and the speculative grade liquidity rating at SGL-1.

Moody's also said it revised the company's outlook to stable from negative.

The stable outlook reflects the company's significant improvement in credit metrics and an expectation that the positive momentum will continue despite exposure to an evolving retail environment, the agency said.

The company has grown its topline and profitability over the last several quarters, largely driven by continued success in its direct channel, which is helping offset headwinds in its brick and mortar business, mostly resulting from the closure of its namesake stores embedded in Sears locations, Moody's said.

The ratings reflect the company's elevated leverage and moderate interest coverage, primarily resulting from several years of topline declines and associated profitability challenges, the agency said.

The ratings also consider the highly promotional and evolving specialty apparel market in which the company competes, Moody's said.

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