S&P upgrades L Brands

S&P said it raised all its ratings on L Brands Inc., including its issuer rating to BB- from B+.

L Brands Inc. plans to repay about $1 billion of debt. “The company also raised its earnings guidance for the first quarter of 2021, citing better-than-expected sales and profit margin amidst operating uncertainties,” S&P said in a press release.

“Pro forma for the debt paydown, leverage improves to the low-2x area. In our view with leverage at this level the company has a good amount of cushion to absorb potential short-term performance volatility that could result from the pandemic,” the agency said.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.