S&P gives L Brands notes BB+

Standard & Poor's said it assigned its BB+ issue-level rating and 3 recovery ratings to L Brands Inc.’s proposed $400 million senior unsecured notes due 2035.

The 3 recovery rating indicates an expectation of meaningful recovery, at the high end of the 50%-70% range, in the event of payment default.

L Brands plans to issue the $400 million notes with subsidiary guarantees; proceeds will mainly be used for share repurchases. The proposed notes do not meaningfully change the company’s credit metrics.

S&P said the ratings reflect the company’s solid market position in intimate apparel and personal care products, strong brand recognition and marketing capabilities. L Brands’ participation in the intensely competitive specialty retail industry and discretionary product offering tempers these strengths.

The agency expects the company will continue to generate consistent operating performance over the next 12 to 18 months.

© 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.