Fitch upgrades Levi Strauss

Fitch Ratings said it upgraded Levi Strauss & Co.'s issuer default rating to B from B-, asset-based loan to BB/RR1 from BB-/RR1 and senior unsecured debt rating to BB-/RR2 from B/RR3.

The outlook is positive.

The agency said the upgrade reflects the improvements Levi has made to streamline its business while focusing on product mix and a more premium offering in its operating segments. These initiatives have enabled the company to stabilize revenues while growing profitability, resulting in a strengthened credit profile. The total debt-to-EBITDA ratio fell to 3.8x for the fiscal year ended Nov. 26 from 4x in fiscal 2005.

The ratings also consider Levi's well-known brand name, geographic diversity and liquidity position, offset by high debt balances and the competitive nature of the denim and casual bottoms market, Fitch said.

The positive outlook reflects Fitch's expectation that positive sales trends could lead to further rating improvement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.