Fitch rates L Brands notes BB+/RR4

Fitch Ratings said it assigned a BB+/RR4 rating to L Brands, Inc.'s $400 million issue of 20-year unregistered senior guaranteed notes.

Proceeds will be used for general corporate purposes, including capital expenditures, dividends and share buybacks.

Fitch said the ratings reflect L Brands' strong brand recognition and dominant market positions in intimate apparel and personal care and beauty products, strong operating results and solid cash flow generation that is characteristic of an investment grade profile.

While credit metrics have been reasonable, with leverage at or slightly below 3.5 times since 2010, the BB+ rating takes into consideration the company's track record of shareholder-friendly activities, which could push leverage above this range, the agency said.

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