Fitch snips Levi Strauss

Fitch Ratings said it downgraded Levi Strauss & Co.’s ratings, including the long-term issuer default rating to BB from BB+. The outlook is negative.

“The downgrade and negative outlook reflect the significant business interruption from the coronavirus pandemic and the implications of a downturn in global discretionary spending that Fitch expects could extend well into 2021,” said Fitch in a press release.

Fitch said it expects a sharp increase in adjusted leverage to around 7x in fiscal 2020 (ending November 2020) from 3.1x in fiscal 2019 based on EBITDA declining to about $175 million from about $750 million in fiscal 2019 on a nearly 25% sales decline to $4.4 billion.

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