S&P revises L Brands view to positive

S&P said it affirmed L Brands Inc.’s B- issuer rating and revised the outlook to positive from stable.

“The outlook revision reflects better-than-expected operating results at Victoria Secret (VS) and ongoing solid momentum at Bath & Body Works (BBW). L Brands has focused on cost-cutting initiatives and inventory management during the pandemic, which led to good profit margins. While some moderation in performance is likely in fiscal 2021, our revised forecast calls for profit margins returning to pre-pandemic levels, and we believe the company could sustain leverage consistent with our upgrade threshold,” S&P said in a press release.

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