Fitch gives L Brands notes BB+/RR4

Fitch Ratings said it assigned a BB+/RR4 rating to L Brands, Inc.'s $500 million issue of 10-year senior guaranteed notes.

Proceeds will be used to pay down the company's $500 million in 8½% senior guaranteed notes due June 2019.

Fitch said the rating reflects L Brands' position as a strong operator of two leading brands, proven track record of driving growth despite challenges in the broader retail space and a shareholder-friendly posture.

“L Brands has displayed strong customer loyalty and ability to introduce compelling, unique merchandise despite challenges across the mid-tier mall retail space,” the agency explained in a news release.

“While near-term performance has been impacted by recent category eliminations and general mall-based retail traffic challenges, Fitch believes that the company's top-line should begin to stabilize as it laps declines from exited categories and recent strategic changes take hold.”

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