Fitch gives BB+/RR4 to L Brands notes

Fitch Ratings said it assigned a BB+/RR4 rating to L Brands, Inc.'s $700 million issue of 20-year senior guaranteed notes.

Proceeds will be used to pay down the company's $700 million 6.9% senior guaranteed notes due July 2017.

Fitch said the ratings reflect L Brands' strong brand recognition and dominant market positions in intimate apparel and personal care and beauty products and strong operating results 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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