Fitch lifts Levi Strauss

Fitch said it upgraded Levi Strauss & Co.'s long-term issuer default rating to BB+ from BB. The agency also boosted Levi's unsecured notes to BB+/RR4 from BB/RR4 and affirmed its ABL at BBB-/RR1.

“The upgrade reflects Levi's improving operating trajectory, and Fitch's view that the company's EBITDA will approach pre-pandemic levels in fiscal 2021 (ending November 2021) based on a rebound in revenue, good cost control, and channel shifts toward the more profitable direct-to-consumer channel. As such, Fitch expects adjusted debt/EBITDAR (capitalizing leases at 8x) to improve below 3.5x in fiscal 2021,” the agency said in a press release.

The outlook is stable.

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