Fitch rates Levi Strauss loan BB+

Fitch Ratings said it assigned a BB+ rating to Levi Strauss & Co.'s second amended and restated $750 million five-year asset-based revolving credit facility. The company's other ratings are a BB- issuer default rating and BB- senior unsecured notes rating.

The outlook is stable.

On Thursday, Levi Strauss drew $343.2 million under the amended credit facility and used $220 million from cash on hand to purchase the 12¼% senior unsecured notes tendered under its cash tender offer.

The agency said the ratings reflect the improvements made to stabilize Levi Strauss' operations and operating margins as well as its well-known brand names, geographic diversity and good liquidity position.

The ratings also considers the company's high debt balances and the competitive operating environment of the denim and casual bottoms market, Fitch said.

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