Moody’s rates L Brands notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to L Brands, Inc.’s proposed $500 million senior unsecured guaranteed note offering.

The company’s other ratings are unchanged, including its Ba1 corporate family rating, Ba1-PD probability of default rating, provisional Ba1 senior unsecured guaranteed shelf rating, provisional Ba3 subordinated shelf rating, provisional Ba3 preferred shelf rating, Ba1 existing senior unsecured guaranteed notes ratings and Ba2 senior unsecured unguaranteed notes ratings.

The speculative grade liquidity rating is SGL-1 and the outlook is stable.

Proceeds from the proposed notes will be used to redeem L Brands’ existing $500 million senior unsecured guaranteed notes due June 2019.

The proposed notes will rank pari passu with the existing senior unsecured guaranteed notes.

“L Brands' Ba1 corporate family rating is supported by its popular well recognized brand names which drive its strong profitability,” Moody’s said in a news release.

“The rating also acknowledges its very good liquidity and moderate leverage and good interest coverage, with debt to EBITDA of 3.3 times and EBIT to interest expense of 3.3 times.”

© 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.