S&P rates L Brands loan BBB

Standard & Poor’s said it assigned a BBB rating and 1 recovery rating to L Brands Inc.’s amended and restated $1 billion five-year senior secured revolving credit facility.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The company is amending and restating its existing $1 billion senior secured revolving credit facility due July 2016.

Borrowers under the facility will include L Brands Inc., along with the addition of certain international subsidiaries.

The amended and restated credit facility and the guarantees will continue to be secured by the same collateral that secures the obligations under the existing credit agreement.

The BB+ corporate credit rating on L Brands reflects its stable free operating cash flow generation, solid market positions in intimate apparel and personal care products, strong brand recognition and marketing capabilities and broad geographic diversity, S&P said.

The ratings also consider a view that management will remain aggressive with its shareholder returns, including share buybacks and special dividends, the agency said.

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