Moody's rates L Brands notes Ba1

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

Moody's also said the ratings on L Brands 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 company's speculative grade liquidity rating is SGL-1 and the outlook is stable.

The proceeds from the proposed offering of notes due in 2027, along with cash, will be used to exchange portions of its 2020, 2021 and 2022 senior notes, Moody's said.

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

The ratings are supported by its popular well-recognized brand names, which are driven its strong profitability, Moody's said.

The ratings also acknowledge its very good liquidity and moderate leverage and good interest coverage with a debt-to-EBITDA ratio of 3.4x, the agency said.

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